No matter what the reason for starting your own business, you may want it to outlast you. Building a successful small business from the ground is a huge success, and you have worked hard to build your employees and clientele who won’t want your business to close.
Keep reading to have a look at some steps you can take to manage your business legacy.
Plan for your future from the start
You may have a 5 year plan, but what about a 100 year plan?
It is important to focus on the future of your business from the very start, no matter how hard it is to envisage it. By setting out your end goal, you will be able to plan backwards from there and work out all the steps you need to take to reach your goal.
Once you have a more established business, you can start to look at a succession plan.
Writing a Succession Plan
When the time comes to sell your business, a legally binding succession plan is essential. You need to pass on the plan to your successor and employees so the business can continue to run according to your vision.
A thorough succession plan should include everything that will happen when the founder steps down. It should also address what would happen if there are multiple owners and someone wants out of the business.
Things to include in your plan:
- Who will run the business after you and how they will be chosen?
- How ownership will be passed on
- Tax implications and how to deal with them
- The process of buying an owner out
- Any stipulations in terms of ownership (Does it have to be passed to a family member or not?)
It is important to take time and sit with a solicitor to make sure your succession plan is well structured and make sure the process runs smoothly.
Set up your business to work without YOU
You need to ensure your business works without you if you want more time flexibility and ultimately one day, to pass on or sell the business.
You also need to build a team around you who can take over tasks such as administration, accounting, marketing and any other daily duties that take up a lot of your time. Think big and hire out the daily tasks!
This is also about educating those who will take over and keep them updated regularly to make sure they understand your vision.