As you approach your retirement, you may be in two minds. One of them will be excited for what’s to come – your future years of relaxation, adventure and freedom. The other half of you will be worrying about what’s to come – How will you secure your legacy? After all, you’ve devoted years of your life to building up the company and ensuring its success so it’s natural that you want your success to be reflected in the continuing development of the company.
Legacy and succession planning is, therefore, a vital step for you to take before your eventual departure. This way you can ensure that the business remains a reflection of you and keeps the identity and culture you spent years building up.
The Importance Of Securing Your Legacy
As you approach your retirement you’re undoubtedly looking forward to a nice break away from the stresses of the 9-5. But if you don’t get succession planning right, it may impact your well-deserved relaxation as you’ll be constantly on edge thinking about your company and worrying that it’s not going the way you want it to.
And of course, you can’t forget the most important aspect of the business – your clients! They are the reason your business exists in the first place and you want to ensure they receive the exact same level of care, attention and expertise they have come to expect over the years. Otherwise, they may start looking elsewhere, and your customer retention and acquisition strategy may begin to stagnate.
A good succession plan ensures the sustainability and development of your company for years to come. You can kick back, relax and know that everything is taken care of.
How To Carry Out Succession Planning
To begin succession planning, you will have to identify your potential successors. You ideally want someone with a wealth of experience who knows the company as well as you do and is willing to take the reins to ensure the company keeps it identity without you around.
Once you’ve identified the successor, you need to assess their readiness. They may have a lot of experience, but working in a company and running a company are two completely different tasks which require different skill sets. If they are not displaying the readiness you want to see, make sure to invest in their training and development. Becoming a mentor or assigning them a mentor may work well at this stage to help them gain the necessary knowledge and skills from people with first-hand experience.
The next step is to develop a comprehensive exit plan. An exit plan is crucial for ensuring a smooth transition when you step away from your business, as it helps the business to maintain continuity and stability. A well-structured exit plan involves a comprehensive review of your business’s finances, operations, and key stakeholders. It should outline roles and responsibilities and discuss the key steps needed to successfully transfer ownership of the business. With a clear strategy in place, you can set meaningful goals and make informed decisions that support the long-term vision of the company.
Once all that is in place, it’s time to consult with some professionals such as lawyers and accountants to ensure all the necessary legal and financial changes are in place for your exit.
Preparing Your Staff
It’s not just your successor that is impacted by you leaving – it’s everyone in your company. Your employees want the security that the business they work for is maintaining the culture and ideals that they’ve come to know over the course of their employment. Most people don’t like change – and you don’t want to risk losing any of your employees as they drive the growth of your business.
Make sure you’re open and honest with your staff. Let them know what is happening and when, and have some trial periods without you there to make sure everything runs smoothly. Hold sessions with them where they can bring up any worries or concerns they have, and make sure these are addressed promptly. By including them in the planning, you are ensuring they are aware of their value to the business and know that their opinions matter.
Thinking Of Selling Instead?
Not everyone wants to pass their business down. Perhaps after all your years of hard work, you want to cash in your biggest asset and generate a lump sum to fund the retirement lifestyle of your dreams.
Good news – it is possible to sell your company and still keep your legacy intact. How? Reeves works with fellow IFAs to plan and execute their exit strategy, and when you come to us we don’t just simply buy your business, we invest in the relationship you’ve built with your clients, ensuring your legacy lives on for many years to come. We understand that selling is a big deal, so we make the transition as painless as possible for both you and your clients.
If you're interested in selling, speak with us today
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