Business Succession 101 Series: The Introductory Issue

Business Succession 101 Series: The Introductory Issue

Change is constant. Especially in the world of business. As a thriving business, it is natural to think of profits, revenues and survival in the industry. But a bigger business picture means planning for your business’ roadmap. Yes, this still means profits, revenues and survival, but it also means organising all business aspects for future-proofing, be it in terms of finances, people, products or processes. Collectively, this planning process is called business succession.

Business Succession
Business Succession

According to Family Business Facts, Conway Center for Business 2012, 80 to 90 percent of US businesses are family owned. However, besides that information, less than a third of these businesses get turned over to second generation family and only 10 percent make it to third generation, as mentioned by George Stalk and Henry Foley in their Harvard Business Review article, “Avoid the Traps That Can Destroy Family Businesses”. Be it a family business or not, you benefit by protecting the investments you have made in a company.

Size does not matter in Business Succession

If there is something that you need to know about business succession, it is not exclusive to a certain business size. As long as the goal is to protect investments, the more that you need to plan on it. Many small and medium-sized businesses take succession planning for granted and are more involved in growing the business. But as an entrepreneur, long term goals are just as important as short term goals.

Because of the business size, small and mid-sized business owners get caught up on daily production, thus, the short term plans. But the matter of the future of the business also lies in the successful turn over of manpower, material, methods and finances to the future leaders of the company.

The 4Ms in Future Succession

One of the issues of not having a succession plan is in the description. It’s full of technical details. If you look closely into it, there are elements for finance, legal, human resources, operations, marketing and a lot more. You have to admit, it is too much to take for one person alone.

However, lack of knowledge or understanding of a succession process should not hinder an organisation into responsibly planning. At the same time, do not be confused as to think that succession will only tackle finances. If you must have a guide, think of the 4Ms of root cause analysis: man, method, machine and material, as a close association to what lies ahead of an organisation’s succession planning.

Do not tackle the planning on your own

A business succession plan should not be taken by one person or one department alone. It is a team activity that will need the inputs of different people within the organisation. In addition, seeking the help of a professional business succession advisor will help create a structure and process for the planning.

The best time to plan is now

There is never a better time to plan an organisation’s business succession than now. The sooner plans are in place, the better secured your company is. If there are matters that are unclear, there are business advisors that can help you start the process. There are companies that offer free business consulting like the Atakkusu Group. The first step is to always learn more on the topic. There are also free seminars offered by the Atakkusu Group to educate entrepreneurs on different business segment issues. If your company is in Nagoya, Atakkusu has a business succession Nagoya branch at 450-0002 Nagoya Nakamura Meieki Meieki 5-27-13 Nishiki Bridge Building. They can be reached at telephone number 052-586-8811. While the business succession Tokyo branch is at 101-0047 Uchikanda, Chiyoda-ku, Tokyo 1-13-7 Shikoku Building with telephone number 03-3518-6363.

The Atakkusu Group is a consulting organisation with expertise on the following services:

  • Corporate Taxation
  • Accounting Strategy
  • Business Consulting
  • Human Resources Consulting
  • Business Innovation Support Consulting
  • Sales Support Consulting
  • Successor Coaching
  • Global/Overseas Expansion/Management Consulting
  • Financial Consultation
  • Research

Aside from Tokyo and Nagoya, Atakkusu Group also has operations in Osaka, Shizuoka and Sendai. Entrepreneurs can take advantage of free events organised by Atakkusu Group, check out their website for the schedule of events and other information on business consulting at http://www.attax.co.jp.

The Bottomline

At the end of the day, think of your organisation’s security. The best course to take is to make sure that your company is at a value that everyone in your organisation will be happy and satisfied about. Visit http://xn--j2r801ab2u4ia.com

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