As we saw this weekend, King Charles III has had over 70 years to prepare for his reign.
From the moment he was born, his destiny was clear. Queen Elizabeth knew that he would one day be king and trained him for the job throughout his life.
In short, she had a succession plan.
As a business owner, you need a succession plan as well.
You need to consider what will happen to your business once you no longer want – or are able – to run it. Will you sell the company? Are you going to train an heir? Will you stay on in some capacity? Or will you continue to own the business, drawing profit but allowing someone else to run it?
The answer to this question has financial implications.
What you decide to do with your business later on will influence the way you develop it today. For example, if you plan to sell the business, you need to ensure that it is attractive to potential buyers. This will affect where you invest and cut, who you hire, the financial records you keep and much more.
Plus, without a proper plan in place the future of your business is uncertain, which could lead to significant financial issues down the line.
For instance, if you decide to retire without a proper succession plan, your business could be left without proper leadership, resulting in decreased productivity and profits. This is not a result any responsible business owner would want as their legacy – particularly if you plan to continue drawing an income from the business you founded.
That’s why, when we help clients manage their finances, we often get involved with succession planning. It’s closely aligned with financial planning.
As we understand your business in greater depth, it also naturally leads to strategic conversations about the direction of your company. We often get involved in discussions about business development, marketing, hiring and other decisions because they all have a financial angle. And because we’re not emotionally involved, we can challenge assumptions freely and really sharpen your thinking.
If that’s the kind of financial management you’re looking for, please get in touch with me today.
This level of financial management goes far beyond the tactical issues that a “normal” accountant deals with, such as compliance and end-of-year accounts (though we do those too!).
This is for you if you’re ready to upgrade your finance function to world-class, replacing an ad hoc approach to money management with a strategic one. We’ll help you plan and budget properly, thinking long-term about your financial goals and the future of your business, and instituting all the systems and processes necessary to improve your growth and profitability.
And we’ll help you develop a much deeper understanding of your company’s financial situation, so you can make the best possible decisions for your business…
…Including about what happens to it, once you’re ready to leave.
Then hit ‘reply’ to this blog or call us on 01279 647447 to arrange a no-obligation chat about how we can help you.
Warmly,
Garry
