Select and focus on five key initiatives for the next three months, and measure the benefits achieved and prepare for your next strategic succession planning cycle.
Succession planning will help you keep focused on identifying key value drivers to maximise your business investment and effectively manage risks, weaknesses or threats. So what exactly is it? It’s a strategic process that allows you to transition your equity ownership by way of whole or part-sale to fund your ongoing income during retirement.
When to do it
Succession planning should not be separate from business planning. They should be linked and started early to prepare for the long term. You need to assess your current position, set out what you want to achieve, and develop a plan for getting there.
A new financial year is a great time to reflect on your progress towards achieving your retirement goals and provides an opportunity to identify new strategies for optimal growth, profitability and performance.
Working “on: vs “in” your business
The first step is investing time to work on your business, reviewing key business performance measures and industry trends:
Step by step plan
Plan ahead: identify and prioritise key initiatives for the next 12 months. These should be focused on improving profitability, performance and increasing the equity value of your business.
Some key initiatives for succession planning include:
Break it down
Take charge of your business to ensure it’s well positioned for the road ahead. Select and focus on five key initiatives for the next three months, and measure the benefits achieved and prepare for your next strategic planning cycle.
Too many times we see business owners retire who haven’t spent the time during their career to determine how they will fund their retirement years. If you start early, you can make the most of your business so it can be a big nest egg for your future.
Ashley Quinton, Director, Prosperity Advisers Group