Future-Proof Your Business with a Clear Succession Strategy

Succession planning is one of the most crucial steps a business owner can take to secure the future of their business. Yet, in my experience, it is also one of the most overlooked.

Many owners recognise the need for a plan, but often put it off because it seems complicated or uncomfortable. The truth is, avoiding those conversations can create much bigger problems later.

A few years ago, I met with a family business expecting to review their accounting and tax work. Instead, it turned into a complete succession planning project.

I was expecting to meet a 70-year-old business owner and his 45-year-old business partner. When I arrived, the 70-year-old’s son, who was in his 30s, was also at the meeting. It turned out the father had quietly retired three years earlier without any formal handover or succession plan. He still owned 50% of the business, the buildings and other assets, while the son worked as his successor without actually being recognised legally.

The business was still running, but the ownership structure, building ownership, and future direction were all unclear. The son was working in the business but had no formal stake in it, and other siblings were not involved. The father was retired for all intents and purposes but maintained legal ownership. If something had happened to the father, it would have quickly become a legal and financial mess.

We worked closely with the family to get everything in order. This included transferring ownership of the business and the building from father to son, updating the legal documents, and clarifying the roles and expectations within the business.

Once the plan was in place, everyone could finally relax. The son knew he truly owned the business he was running, and his business partner could focus on growth without worrying about what might happen if something unexpected occurred. And the father could retire with peace of mind knowing that greedy siblings wouldn’t upend the whole business in the event of his death.

This experience reinforced for me the importance of succession planning. It is not just about who takes over the business. It is about protecting everything you have built and ensuring your team, clients, and family are taken care of.

Succession planning should never be left until retirement is just around the corner. The best time to start is while the business is strong and you have time to consider the right structure, people, and strategy for the transition.

At Sharp Accounting, we help business owners establish clear and practical succession plans, enabling them to move forward with confidence, knowing their future is secure.

This article is the first in our new series on succession and exit planning. Over the coming weeks, we’ll explore how to value your business, prepare for transition, and structure a smooth handover.

Do you need help with your succession strategy?

Our team can help you create a plan that protects your business and ensures a smooth transition. Contact us to discuss your needs.