A comprehensive transition plan can benefit your business in the here and now, as well as in the future. It can help you take account of your business’s current state and its strategic direction, complementing and supporting your business plan at whatever stage it’s at.
It could also help to maximise the future value of your business. Helping to minimise your tax liability, maximise your wealth and allow you to better meet your future needs – whether that’s funding your children’s education, opening another business or leaving a legacy for future generations.
As a business owner it’s important for you to begin considering when you’d like to exit your business and how much capital you’ll need to do so comfortably. It’d also be beneficial to come up with a realistic projected business valuation. You may realise upon closer inspection that selling your business is more viable. If that’s the case, potential buyers may want to look at records from the last two to ten years, to benchmark your business and look for profitability patterns.
If you’re changing leaders, you need enough time to identify and prepare them. Putting a comprehensive succession plan in place may help you reap considerable benefits, particularly with your staff, customers and suppliers. They’ll likely respond positively to clear communication that’s provided well in advance, as this gives them time to adjust to how the business may look under new management.
You might also find that if you’re faced with a major life event in the future, that a detailed, long-term plan could help simplify your decision making under stressful conditions.