Really the average man now lives until the late 70s and women live an average of 83 years. About half of all Australians ages over 30 can, at some time, expect to get sick or injured to the point that they can no longer run their businesses.
Planning for the future is put in too-hard basket by many business owners caught up in the day-to-day running of the business. What little time they do have to work on the business (rather than in it) is spent drumming up ways to generate higher profits, manage cash flow and reach new customers.
It is important to look ahead, think and plan about the future. So crucial is succession planning to the future that highly successful entrepreneurs start working on a succession plan the first day of business (if not earlier).
Whether you've brought a business or started one from scratch, what ou plan to do with the business and when should be thought about and documented. Do you want to sell the business, or is it your retirement fund? Do you want to hand it down as a family business? As a business owner don't you owe yourself, your dream and the people associated with your business the respect to have a plan in place that tells staff, family members or parters what to do if you can no longer come to work due to death, accident or illness. Every activity undertaken in your business carries on as usual. This means customers can expect the same impressive experience they're used to, profits aren't likely to dip, and anyone associated with the business can carry on as normal with the same level of trust they hae always had.
94% of small business owners don't have a documented succession plan at all.
If you make the effor now you will become part of a such small minority of business owners that you cannot imagine the competitive advantage at sale or handover time.
Succession plans are also vital if you plan to rely on the ongoing income from the business to fund your retirement. A solid plan means very profiient management of the business going forward and you can rest assured that any family members who rely on income generated by the business will be well looked after.
Whether you plan to sell all or part of your business or hand it on, a succession plan enables you to work towards implementing and refining systems and processes to the point that the business can run just as well without you as it did with you.
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