How to Get Started With Succession Planning
In my last article, I talked about why every business needs a succession plan. This time, let’s look at how to get started.
Succession planning is not just about what happens when you step away. It is about setting your business up so it can continue to thrive without you. The earlier you begin, the more control you have over the process and the outcome.
For some business owners, that transition means handing the reins to family or key staff. For others, it may mean preparing the business for sale. Either way, the process starts with understanding your goals and putting a plan in place early.
Getting started does not need to be complicated. It simply requires some clear thinking, honest conversations, and the right structure
around you.
1. Understand Your Personal and Business Goals
Before you make any decisions, take time to define what you want for both yourself and your business.
Is finding a successor part of an ongoing growth strategy? Is it part of an exit strategy?
Are you planning to retire completely, or would you like to stay involved part-time? Do you want to hand the business to family, transition to key staff, or prepare it for sale?
Your answers to these questions will shape the plan. The most successful transitions happen when personal and business goals are aligned, giving you clarity on what success looks like for everyone involved.
2. Choose the Right Successor
Selecting a successor is one of the biggest decisions you will make.
Sometimes the choice is obvious, such as a family member, long-term employee, or business partner. In other cases, it may involve looking outside the business for the right buyer or investor.
The key is to look beyond loyalty or familiarity and consider capability, leadership potential, and alignment with your business values. Once identified, give your successor time to grow into the role, build trust with your team, and gain confidence in decision-making.
3. Assess How Ready Your Business Is
A good succession plan depends on a strong, well-structured business. Step back and assess how reliant the operation is on you personally.
If you were to take a month off, would everything keep running smoothly? Are systems documented? Does your team know who is responsible for what?
The more your business can operate without you, the smoother the transition will be. It also increases the value of the business, whether you intend to pass it on or sell it.
4. Document the Plan and Set Timelines
A succession plan only works if it is written down and shared with the right people. Outline who will take on which roles, how ownership will transfer, and when each stage of the transition should occur.
Include details on leadership handover, communication with staff and clients, and any training or mentoring required along the way. The plan does not have to be rigid, but it should provide direction and accountability.
As you document your plan, include clear details of ownership, intellectual property, and assets. This information not only supports a smooth handover but also makes the business easier to value or sell later on.
5. Work with Your Accountant and Advisors
Your accountant should be part of the process from the start. They can help you understand the financial, legal, and tax implications of your plan, guide valuations, and structure the transition to protect your interests.
Getting advice early can also help you avoid costly surprises if you later decide to sell. Accountants, lawyers, and business brokers can work together to help you understand your obligations, value the business correctly, and plan the transition smoothly.
Engage other trusted advisors where needed, such as legal and financial specialists, to make sure every detail is covered and nothing is left to chance.
Succession planning is one of the smartest investments you can make in your business. It protects what you have built, supports the next generation of leaders, and gives you confidence in the future.
At Sharp Accounting, we help business owners create clear, practical succession plans that turn uncertainty into security.
Do you need help getting started with succession planning?
Our team can guide you through every step of the process and help you plan with confidence. Get in contact to discuss your requirements.
