Succession Planning is important for SMEs

Being aware of your client’s short and long-term plans are important for accountants in order to provide them with sound succession planning advice.

Some clients only want to be in a business for few years – they purchase the business, build it up and then want to sell. One of the key components of being able to successfully sell the business at that time normally relates to the level of professionalism within the team. Have the team members been “UPSKILLED TO PERFORM THEIR DUTIES”, whether the owner of the business is there or not? This is an important component of succession planning for someone who wants to exit after a few years.

Other SMEs may have a longer time plan in mind, perhaps around 10 years, and they will be conscious about their own long-term plans. However, if they wish to maximise the value of their business, they need to be giving consideration to strategic planning as it affects the overall business, which could mean they require advice on:

• Business Planning
• Risk Management
• Clients/Customers – have they been developed as ambassadors for the business?

The 3rd group of clients are probably relaxed about a long-term duration in the business, perhaps with their family involved in the day-to-day business operations, and they may have expanded the business so that they are receiving external advice delivered by a Board of Directors or Board of Advice. Some of the additional issues that they could be concerned about include:

ESS BIZTOOLS is committed to assisting accountants to deliver a broad range of professional services to SME clients, including SUCCESSION PLANNING…because many SMEs need assistance NOW!

We invite you to register to our complimentary webinar – Upskilling Your TEAM – on Thursday 13 April 2023 at 12pm AEST. Click here to register.