Small business succession

The David Jones shake-up of last week highlights how important it is for business, big and small, to think about their succession plans.

Who will take the reigns of your business if you decide you've had enough? Surely you haven't put all this effort into your business to simply shut up shop?

While every business is different, and every succession plan is different, it all comes down to planning. Here are some common questions you should ask yourself:

• Who can take over? Do you want a particular staff member to take over? What about someone in your family? Or the kids? Or should you be targeting a competitor to step into your shoes?
• How are my systems and processes? By setting up watertight systems and processes in your business, you have more of saleable commodity. Simply, someone else can easily see how they could do what you do.
• What skills will be needed? Once you've identified someone who could take over the reigns, look at the skills they may need to learn before you leave. And start the training now.
• How will it happen? Set the timetable for the transition to power. Then make sure everyone knows how it will happen and how you will one day phase yourself out of your business.

A smooth succession depends on you answering these four questions. Write down your answers.

It's never too early!

Margie