At Horsfield and Smith chartered accountants, we aim to develop close working relationships with our clients. This allows us to understand their businesses intimately. We see all too often that many business owners are so focused on the day-to-day challenges that they neglect to plan for the future. This future includes a time when they themselves may no longer be involved in the business.
While the day-to-day pressures of running a business are undeniably important, it’s vital to carve out time to consider what would happen to your business and your family if you were to become seriously ill, incapacitated in an accident, or even passed away.
There are steps you can take to protect your business and your family. These include taking out life assurance and insurance against loss of earnings. However, financial protection is just one piece of the puzzle. You also need a plan for how your business will be managed in your absence. This is where a robust succession plan comes in.
The Benefits of Succession Planning
If you are the sole owner of your business, consider bringing family members into the management team if you want them to be involved in the future. This succession planning should be addressed within your exit strategy. If this isn’t feasible, explore ways to empower key staff members to take on leadership roles. This ensures the continuity of the business and the security of their own futures, alongside those of your family.
In some instances, if the business cannot operate without you at the helm, there may be ways to maximise its value. This could involve selling the business or its assets and the capital gained can provide a future income stream for your family.
How Horsfield and Smith Can Help
Horsfield and Smith can act as your trusted business advisor throughout the exit strategy planning process. We will work collaboratively with you to understand your unique goals and objectives. We’ll then help you develop a plan that considers all the relevant factors, including tax implications.
Here are some of the ways we can assist you:
- Identifying your goals for the business and your family. What do you want your legacy to be? How do you want to see your family provided for?
- Exploring your exit options. We’ll discuss all the possibilities with you, from selling the business to a full or partial management buyout.
- Understanding the financial implications. We’ll factor in potential tax liabilities and help you make informed financial decisions.
- Developing a clear and actionable plan. Our team will help you craft a roadmap for the future of your business.
Don’t Wait Until It’s Too Late
None of us can predict the future. However, by taking proactive steps today, you can ensure the peace of mind that comes with knowing your business and your family will be protected in the event of the unexpected.
At Horsfield and Smith, we are here to help you develop a comprehensive business succession plan. We encourage you to contact us today to schedule a free consultation. During this consultation, we can discuss your specific circumstances and answer any questions you may have.
