The desire of being an entrepreneur naturally comes with you wanting your business to be successful and remain that way. When transferring business power through succession from your generation to the next poses some risk but it can be successful if done properly.
Creating a successful succession allows a business to continuously thrive despite who steers the management or owns it. Older employees will expect the same loyalty, security and stability they have been receiving, and newer employees will expect growth opportunities, equity and transparency pertaining to their roles. If conditions decrease following succession, a decrease in the workforce would follow suit.
Before transferring the power of your company, make sure you feel confident about your chosen successor, that the company is financially stable to ensure a smooth transition, whether you will continue to be involved in the company in any way, and whether a contingency plan is in place should hiccups occur.
This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your adviser for specific and detailed advice. Errors and omissions excepted (E&OE).