Running a business is full of big decisions and one of the most important is what happens when you’re no longer at the helm.
Whether you’re planning to retire, sell up or simply want to reduce your involvement in the day-to-day, succession planning is the key to making sure your business keeps going strong. It’s not just about picking a name to take over, it’s about building a future that works for you, your family, your team and your customers.
What Is Succession Planning?
Succession planning is the process of preparing for someone else to take over your role in the business, either gradually or all at once. It might be a family member, a trusted employee, a business partner or even an external buyer.
It’s about more than just a will or retirement plan. It’s about:
- Keeping the business stable and profitable
- Protecting your legacy
- Avoiding disputes
- Minimising tax liabilities
- Giving you peace of mind
Why It Matters
Too many business owners leave succession planning too late often until health issues or unexpected events force their hand. That can lead to rushed decisions, family tensions or even the closure of a profitable business.
Done properly and in good time, a succession plan can:
- Help you exit on your terms
- Train and support your successor properly
- Maximise the value of the business
- Reduce Inheritance Tax and Capital Gains Tax
- Provide financial security for your family
What to Think About
- Who will take over?
Start by identifying possible successors. Are they ready? Do they need training or support? If there’s no obvious choice, consider if an outside sale is more suitable. - What is the business worth?
Understanding the value of your business is crucial. It helps with financial planning, tax strategy and even family discussions. - What structure will work best?
You may want to pass shares gradually, set up a trust or sell in full. Each option has different legal and tax implications. - When is the right time?
Succession planning doesn’t mean handing over the reins tomorrow, it could be a 5–10 year transition. The earlier you start, the smoother it will be. - Are your affairs in order?
Make sure your will, shareholders’ agreement, business structure and insurance policies all support your succession goals.
How We Can Help
At An Accounting Gem, we support local businesses across Ipswich and beyond with practical succession planning advice. We work closely with you to:
- Review your current position
- Understand your personal and business goals
- Explore tax-efficient options
- Create a clear action plan
Let’s Talk About Your Future
Thinking ahead doesn’t mean you’re stepping back today, it means you’re protecting everything you’ve worked so hard to build.
If you’d like to start the conversation, book a friendly, no-pressure chat with our team, we’re here to help you plan with confidence.
Please see another An Accounting Gem blog: https://www.aag-accountants.co.uk/the-real-cost-of-materials-are-you-accidentally-working-for-free/
Google 5.0
