In 2011 the Canadian Federation of Independent Businesses conducted a poll that revealed that only 10% of small business owners had a succession plan. As a small business owner you need to plan for your company's future change of ownership. A careful exit strategy will help you to maintain the value of your company and your legacy and will ensure a smooth transition to a new owner.
A good succession plan will maintain positive relationships with employees and business partners that will help to bring a good sale price. It will provide financial security for your heirs and other stakeholders as a plan is in place to deal with unexpected events such as death or illness.
Changes in ownership can be stressful for employees, suppliers and customers so your succession strategy needs to include communication plans to make sure that everyone is kept informed during the changeover thereby ensuring that the business continues to run smoothly.
If you expect to be leaving your business within the next five years you need to start planning right away. Even if your business is fairly new you need to have a plan in place should the unexpected happen.
Susan Ward a Canadian business writer says that 70% of businesses do not survive the transition from the founder to the second generation due to poor or no planning, and she offers the following tips for succession planning:
From an article by Susan Ward and Freedom 55 Financial
Stay Alert and Recognize Signs that your Business may be in Trouble
Do Businesses Need Better Access to Rent Subsidies?
The Inevitable Second Wave – How to Prepare your Business
Business Continuity in a Crisis
How Covid-19 has Impacted Offices
Find the Right Balance for your Remote Workers
New Practices you Should Adopt Before Re-opening your Business
Tips for Pivoting your Business During Covid-19