Structuring your business to run without you is the key to unlocking true business value and also creating freedom for yourself.
Our approach when working with our clients is to help them create a real investment – a business that runs without you rather than a job that relies on you for its day-to-day management and success.
We have many years of experience helping our clients to:
- Develop systems and processes to create an efficient business that achieves quality outcomes without your constant input.
- Create a high-performing team that can run the business for you
- Get agreement across all family members to allow for the transfer of the business to the next generation.
- Organise for the managers to take ownership and take over the full day-to-day running of the business.
- Work with our advisor team to strategically assess potential buyers to achieve the best outcome.
- Properly plan for your exit to maximise business value and ensure a smooth transition.
An Integrated Approach
Having done this for over 15 years, we have built a trusted network of specialists which gives our clients access to a wide range of integrated services. This is especially important when creating and then executing a succession plan.
It is important to have access to professionals that understand each other and all work together to help you to achieve the best outcome for yourself and your family. This includes:
- A Business Coach that can identify development areas for the business and for your managers, and that can work with you to implement your succession plan.
- An Accountant who understands the tax and risk implications of changes to your business and ownership structure.
- A Commercial Lawyer who can prepare shareholder and sale agreements and also assess the commercial risks relating to your specific business and industry.
The Key Steps To Follow
Here are the steps that we recommend for most of our clients:
1. Get clear on your own personal goals
Understand why you want to exit, what your timeframe is and even what life after business might look like for you. Having the transition go smoothly and maximising the value from sale or transfer to new management takes time so plan well in advance.
2. Map out the new structure
We do a lot of organisational mapping with our clients including mapping out what the future organisation will look like. Who are the key people and where might they be placed once you have departed? Be aware that skills is one part of the equation but their values and cultural fit is also important for them to be successful in their new roles.
3. Start discussions
Once you are clearer yourself then start discussing this with your key people. Guage their level of interest and suitability and then refine your plan accordingly.
4. Training and skills development
Put in place a training and skills development plan for these key people. Depending on their future roles, they may need to develop their skills around leadership, business management, planning, marketing, financial management, etc.
5. Involve other family members in the discussions
Even if they don’t work in the business, other family members may still have a role as a future shareholder or director and they may want some input into the direction of the business.
6. Engage with professionals
Getting the right advice for your specific situation and goals is critical. This will save you a lot of money in the long-run, reduce the potential for personal disagreements and it will make the whole process run more smoothly and result in the best outcomes for everyone involved.
7. Develop a plan and a timeline
Get everything down on paper and communicate this so that everyone is on the same page. Then provide regular updates as you start implementing the plan. Open and regular communication is the key to ensuring a smooth process.
Contact us to discuss your specific situation and to find out how we can help you to plan for a successful exit.