Management buy-outs are a great opportunity for a senior management team to become part owners of a business, but each shareholder will have their own set of goals.  It’s vital that a succession plan is put in place very early on in the game to create transparency and trust.

It’s easy to identify those shareholders who have one eye on the business and the other on the door!  They are the quick thinkers, possibly the more risk taking members of the group, who may want to buy up, merge and acquire at a faster pace than the other members are happy to do.

Those other members probably see themselves as long-term “employees” of the business, as well as shareholders.  They like job security that part business ownership gives them.  There is no right or wrong, though cracks can occur when a power struggle starts to take place.

For succession planning in this situation to be a success, a likely recommendation is to pull in an independent third party or parties to act as advisories.  The aim is to ensure both parties achieve a beneficial outcome that they are all happy with.  For those who want to build and sell up and get out, having independent advisors negotiate and facilitate the process allows for a smoother transition period.

For those who wish to stay on board, then advisors can assist with capital management and strategic planning to allow for the continuity of the business. Even for those who want to stay in the business it’s key to identify early on strong managers who can at some point take on greater responsibility.  Training and development for these managers is a wise investment for any sustainable and profitable business.

Succession planning isn’t just an exit strategy it can also be a time to grow and develop a business, so staff, shareholders and customers all get the best deal.  Whether you want to retire or just move on to something new, the only way to successfully achieve this is to plan ahead.

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To allow for a smooth transition, succession planning needs a strategy and sooner than most people think.

First of all you have to identify what succession planning looks like to you. What is your vision in 2, 3 or 5 years time for you and your business? Do you want more free time but still remain hands on in your business? Do you want to completely let go in 5 years time and try something completely new, with a nice padding of capital in your back pocket?

Whether thinking of moving out or moving people up, you need a plan.

Whether you are in a family business, a small business or part of a larger shareholder group, it’s important to set clear objectives and goals for the future. We tend to get caught up in the focus of constantly increasing profit, building revenue, and improving cashflow but at some stage it’s important to take time out and look a bit further ahead.

If you are after more freedom, what are you happy to let go of? Who can you trust will carry on the baton and ensure the business still thrives? Who in your senior management team has the skills and leadership qualities to take on more responsibility or to help you grow your business? Those people in your team may be the future shareholders in your business and if you want your legacy and integrity to stay in your business, choose wisely.

Thankfully, there are professionals who can assist and support business owners with succession planning. It’s a fantastic tool that allows business owners to gain vital insights and look at different opportunities for growth that they may not have explored. What does the future hold for you and you business? Succession planning is planning for success.

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A business strategy is a way to generate successful business ideas and sustain growth.

A business strategy starts with gaining a sense of purpose. When we understand the WHY in business we can create a clearer vision or sense of direction, for self and the whole company. Everyone knows in business you can’t accurately predict the future, but you can visualise what your future growth looks like to you.

Success comes in all shapes and sizes – breaking into new markets, increasing revenue by x %, building a strong leadership team or designing an exit plan are just some examples. A business strategy helps you identify the steps you need to take towards your future success.

Increasing profit and maximising revenues can come from looking at new opportunities and identifying new threats. These new opportunities come from inspiring people, helping them be better prepared to evolve and grow.

The actions can be anything from on going training and development to KPIs and objectives. Having these actions in place facilitates effective decision making, helping the business pay close attention to what is going on around them.

Luis Gallardo, writer of Brands and Rousers: the Holistic System to Foster Businesses, Brands and Careers wrote, “To be precise there are six R’s that, when used together, help businesses achieve their objective of sustained, gainful growth: Reason, Revenues, Rouse, Reputation, Relationships and Resilience”

Progressive accounting works with the six R’s. Progressive accountants are masters of business strategy. Increasing revenue is driven by purpose, planning, inspiring and connecting. We’re on a mission to helping business and people grow and succeed.

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Adopting new cloud technologies and online tools is a big piece of the puzzle in a business development strategy. We can communicate online at any time of the day or night, if we have the right systems and applications running effectively. It’s an efficient way to do national and global business. You can provide smart solutions quicker and with less fuss.

Advanced technologies are now having a major impact on how we work. Cloud technology allows people to work remotely anywhere in the world, at anytime of the day. Advanced technologies have inspired people to come up with new ideas and new opportunities. It’s important to remember that the only way to capitalise on the new way; is to not be afraid of it. Adapting to change and adopting technology needs to be balanced with growing a strong team culture to drive a successful business strategy.

Online marketing and social media continue to develop positive relationships, if you have a communications strategy to drive successful initiatives. It’s more than just about promoting business in the online world, it’s about promoting good people. Traditionally that always came in the annual review but now smarter businesses can reward and recognise their team by publicly announcing what a great job they do.

When prospective new clients want to do business with you, they go online to check you out – to find out what sort of people you are, and what sort of people you work with. They might have read your vision and mission statement but now they want to make sure you walk the talk. In real time they now have the opportunity to do so.

Developing a successful business strategy takes into account powerful relationships, internally and externally. The holistic approach with a focus on “we are all connected” is how advanced technologies are making their biggest impact. Progressive accountants promote this new way of connecting as a way to motivate, inspire and connect with others, so they can reach their full potential.

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