Has the time come for you to move on from your business? This can be a daunting process to think about, and there is plenty you should think about before making any decisions.
Will The Business Continue?
Though you might be ready for retirement, your business may still be thriving. You may want to consider continuing the business by passing or selling It on. However. It's important you think about what will be most financially beneficial to your family and the company as there are several options here.
You could choose to pass the business on to family and have them continue running it, so your staff feel at ease with the change. You may decide to appoint new leaders from within the business as they understand the day-to-day runnings and may bring new ideas to the table. Another option is to sell the business on, which may be financially beneficial, but you need to consider your business's mission, staff, and customers.
The Importance of a Successful Succession Plan
An effective succession plan should mean customers do not feel any impact of the internal changes. They'll continue shopping as they were without feeling the shift in leadership, and your business' sales will not be affected. Sales may even begin to increase with new leadership as they bring fresh ideas to the table.
Financial Effects
The most daunting part of leaving your business is how you will continue to support your family financially.
An effective succession plan can help minimise tax liability whilst maximising your financial gains from the business. However, it's essential to talk to an accountant when planning on leaving your business, as they can lay out all options for you and help you to generate an effective plan that will achieve these financial outcomes.
At GMP Accountants, we can also provide ongoing financial support for you, your family and your successors once you leave the business.
Get in Touch
If you're planning on retiring soon and handing over your business, please don't hesitate to get in touch with one of our offices today. We're here to help with both your future and your business's future.