Should every business have a succession plan?

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88% of the UK’s businesses are family run enterprises, and 40% of them, it is said, have expressed concerns about planning for their succession. But, planning for succession should be on every family business’ radar, particularly those with large workforces who rely on the business for their livelihood – as well as significant financial obligations.

If you’re a family business owner in Wales, my advice is:

  • Be proactive, and don’t simply wait for the issue to arrive
  • Engage sooner than later with the next generation in the business, and develop their skills as potential future owners and managers
  • Find a non-executive director who can help you help them develop these skills, encourage proper and positive thinking about the future, and support succession in a way that you – as the business owner – simply cannot. It’s a special skill, but it’s out there.

Burying your head in the sand about such an  important issue is never the best approach!