Identifying factors that may influence your Succession Plan

DLA Partners Luxury Property Services in Natai since 2005 Fortune Cookie E1566865272791

The world is evolving at an unprecedented pace. A changing landscape in your industry, global trends, and other environmental factors will influence the timing and strategy behind your succession.

One thing is for sure, a successful and profitable business can’t afford to stand still.

Change and disruption can eat away at the value of your business if not managed and mitigated; just consider online shopping and how that has changed retail.

Businesses that ignore indicators of incoming disruption can find themselves suddenly out of the game. Businesses that respond promptly to change can minimise impact and even use it to gain competitive advantage.

Innovation is key to maximising business value. Staying on top of market trends, getting the right people on your team, growing additional revenue streams, and building sticky customers will pay off when it’s time to exit your business.

Establishing and planning for these factors now will help you to manage a variety of potential opportunities and vulnerabilities to achieve the best price for your business.

Could your business survive without you?

This is one of the biggest factors and a key reason why businesses without a Succession Plan are less likely to thrive under new ownership. They’re also less likely to transition at all, because quite frankly, who wants to buy into that? Humans aren’t scalable.

If daily business operations rely heavily on you, ask yourself: how can I build my team and systems up around me to allow a clean exit?

Whether it’s supplier relationships, industry knowledge, or how to do high level tasks; your succession will rely on effective delegation and the transfer of knowledge and systems. It’s the old adage – “if you’re not replaceable, you’re not promotable”. Succession should be the biggest promotion of your life!

A clear Succession Plan will help your business be more sustainable, scalable and, ultimately, saleable. As they say, timing is everything. So, use time to your advantage and start planning now so you can achieve your desired succession result.

“Someone is sitting in the shade today because someone planted a tree a long time ago.” – Warren Buffet