Small business succession planning starts as soon as possible before it is too late .
Your business, no matter how small, are like a plant. You make the effort to grow it. You spent days and night thinking how to improve it. It is a joy to see the business grow through for loving care.
But a time has come, for us, the owner to realise that we would not live forever. As we age gracefully towards retirement, we must also plan our exit from our business.
A friend a Lawyer, who runs his own legal practise. He is in his mid 50’s and a time for him to think about what will he be doing in 10 years time. He is also thinking what will happen to his firm when he retires? He can’t pass it on to his children as none of them are lawyers by profession. Start thinking.
Another friend who runs a wholesaling business is also in a dliema . The company has two Executives and a professional accountant. They have a few agency lines. During good years they made good money and my friend has a fat bonus . Last two years was not good , still they declare bonus for themselves .
However none of his children want my business .T hey would rather be employed : my friend cant afford to pay one of them what a foreign bank is paying nor what an established accounting firm is paying the other. The third is a Doctor so she is not likely to want to ran a wholesale business . Start thinking .
The questions of succession should start as early as possible, and the succession plan in place as we step out of the picture. When we leave new blood and new management will continue the business.
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