As a business owner, you’ve devoted years of hard work to building a successful business that can create real wealth for you and your family. But how do you unlock that value when it’s time for you or a business partner to take the next step?
Your business is the product of years of long days and sleepless nights. But no-one plans to work for ever. That’s why a business succession plan is critical for every business.
A business succession plan helps guarantee a stress-free and orderly change of ownership when you or your business partner is ready to move on. So you can unlock the value you’ve worked so hard to build, while making sure the business stays healthy.
Yet research from the Commonwealth Bank shows that only 47% of small business owners have an exit strategy in place — and of those with an exit plan, 22% simply intend to close their doors and walk away.
Without a succession plan in place, you run the risk of sacrificing the potential wealth you’ve built up in your business. Especially if you or your partner has to leave unexpectedly due to health reasons, an unanticipated change in circumstances, or even death.
If that happened, you would not only lose the skills that person brings to the business, impacting your revenue and profitability. You may also find ownership passing to family members who are both inexperienced and unsympathetic.
With a well-considered succession plan, backed by comprehensive insurance cover, you can avoid potential problems before they occur, while providing essential funds for an orderly buyout when your business needs them most.
