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Succession planning

Ensuring your business succeeds

What is a succession plan?

A succession plan details your wishes about who you’ll pass your business on to when you are no longer running it, and how.
Effectively it is a form of protection and it may include formal buy/sell agreements and/or specify estate planning in case of death
A succession plan is essential if you’re thinking of selling, approaching retirement or taking a step back from your role in your business. In fact, even if you’re not planning a change in the short-term, it’s a good idea to put a plan like this in place.
There are many benefits to having a succession plan:

  • sets expectations and clarifies what you want to happen to the future of your business
  • sets things up for the retirement you want.

How to go about setting up a succession plan

When it comes to setting up a succession plan, it’s about understanding what your business needs, and what would be in its best interests when you’ve exited the business; and then putting together a formal plan to document this.

You could think of it this way.

  1. Consider where you are, and where you want to be
    Reflect on what your business might look like in the future by factoring in your goals, as well as the needs of your business and/or your family / successors. Part of this will be getting a detailed understanding of your business’s true worth and considering the assets and liabilities.
  2. Plan for changes to your business 
    Before you exit the business, there may be a few changes to make to your business operations. This may include restructuring, recruiting and training a new manager or preparing family successors. It helps to start thinking about the effort involved.
  3. Document your plan with professional help
    With the help of an Adviser and other professionals such as an accountant or lawyer, you’ll need to document your plan so it’s formalised.
  4. Regularly review 
    It’s important to regularly review your plan to include any changes that might be needed as circumstances change.

An Adviser can be your first point of call

An Adviser will be the one point of call who can help you understand which other experts might be needed; such as a lawyer or an accountant.
We know that as a proud business owner, the idea of putting together a succession plan can be an emotional and daunting process. That’s just one of the reasons why it’s a good idea to get the help of an Adviser. They can help you to:

  • identify your short and long-term financial goals
  • understand your personal and general insurance options
  • prioritise and plan based on your needs.
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Important information

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The content on this website is for information only. The information is of a general nature and does not constitute financial advice or other professional advice. Before taking any action, you should always seek financial advice or other professional advice relevant to your personal circumstances. While care has been taken to supply information on this website that is accurate, no entity or person gives any warranty of reliability or accuracy, or accepts any responsibility arising in any way including from any error or omission.

A disclosure statement is available from your Adviser, on request and free of charge.