How to develop your succession plan

When you decide to leave your business, your succession planning will help you successfully transfer your business to your successor.

Developing a good succession plan:

• ensures you are prepared for change
• can make the transition out of your business easier
• helps your successor prepare for their present and future work responsibilities.

Our template steps you through the process of developing a succession plan with links to extra information if you need it.

You may want to check our tips below before you start.

1. Choose a successor 

You need to identify who you would like to take over your business. Your successor could be:

• a family member
• an employee
• a business partner
• an outside buyer.

Make sure you consider what's best for your business. Ensure your successor has the right skills and that they want to take over your business.

2. Value your business

You should value your business early and often. Your business's value will help you understand how much your business is currently worth.

The valuation of your business may change substantially before you plan to leave, but a good valuation will assist with your succession planning.

3. Keep it current

Review your plan regularly. As time passes your circumstances may change and an up-to-date succession plan will ensure you're always ready in the event you need to leave earlier than anticipated.

4. Final handover

If you have made the proper preparations, when the time comes to leave you should simply be able to hand over your business and step aside. By having a clear and current succession plan, you can enable a smooth transition with less chance of disruption to the business's operations.