Do you have a vision for the future of your brand and ultimately your legacy? Business succession planning is crucial if you want a say in what happens next.
No business owner pours their blood, sweat and tears into growing a business for quite literally years - only to see it undervalued, unsellable or unable to be successfully handed over to the next generation of your family or inner sanctum. Similarly, no smart investor will buy into a company that doesn’t have succession and contingency plans for the future.
What Is A Business Succession Plan
Whether we like it or not, nothing lasts forever. Business succession planning is the process of identifying and developing new leaders who can replace the old ones when they inevitably leave, retire or pass away - so think of it as a contingency plan.
There are more than 2.3 million businesses operating in Australia, and up to 87% of these are family owned and operated. Of these businesses, 60% hope to pass the leadership down to another family member - and yet, only 8% have a robust business succession plan in place.
Even if you’re a business owner that doesn’t intend on handing over the reins to another member of your family, you still need a plan of attack in regards to what happens to your brand when you’re no longer there to spearhead the operations. The next in line to the throne could be an employee, a business partner, or even an external buyer - but these are all things that need (and deserve) your attention in advance if you don’t want to risk seeing all your many years of work go up in flames.
When it comes to the form of a business succession plan, this usually varies depending on your current business structure.
Sole Trader - Specific business succession planning provisions can be inserted into your will or estate plan.
Partnership - Your partnership documentation and other legally binding agreements should already outline what happens next in the event that either partner is incapacitated.
Company Or Trust - A Shareholders Agreement, Unitholders Agreement or a hybrid of the two is paramount in ensuring that the assets and business itself is protected and stable.
Where To Source Help With Business Succession Planning
Business succession planning involves identifying and developing future leaders for your brand, entity or company - but it also should include clear, legally binding documentation that ultimately protects your legacy.
JDS Lawyers are a boutique law firm with offices based in Brisbane and the Sunshine Coast. We recognise that our success is dependent upon our ability to meet the needs of our clients in a timely, efficient and professional manner. Our goal is always to achieve realistic, cost-effective and practical solutions for our clients.
If you’re in the early stages of planning ahead regarding the future of your financial assets, it’s always worth speaking to the professionals. To get started with business succession planning, contact John and the team at JDS Lawyers today.