When you are an entrepreneur, there will come a time when you leave the company and someone else takes over your place at the helm. Business succession is not something you just do. Of course, you want to be sure that your company ends up in good hands. How should you approach a business succession? What should you take into account, what should you look out for and how do you ensure that business succession becomes a success? You can read it in this article.
Phyll Financiers is an experienced financier for SMEs. We look at the form in which a loan suits your company best, but we dare to take more risks than the average financier. As a result, there are often more options than you may have in mind. In addition to financing, we are also specialized in debtor management.
If you are an entrepreneur, with a minimum annual turnover of € 250,000, you can submit a financing application using the form on the right. You will usually be contacted within 48 hours about the possibilities.
Discover more information about unsecured business loans
You have to go through several steps in business succession. The first step is orientation. You must look and ultimately decide who is suitable to take over the company. In addition, the period within which business succession will take place must be considered. It is very important to start with this in time. If you want someone from your family to take over the company, there must be a suitable person in the family. If no one in the family can or wants to take over the business, you should continue to look at other options. The follow-up process, therefore, looks different. In addition, the successor must be given the opportunity to prepare for the position that he or she is to perform. Only when it is clear what the wishes are with regard to business succession and what is feasible, can the preparations be started.
The next step is preparation. The preparation can start as soon as it is known who the successor will be. It can help to draw up a follow-up plan for this. This plan will state what needs to be done by whom and when to make the future scenario possible. It is strongly advised to also be involved in coaching for the successor during this step. In addition, three to five years before business succession you must have someone in mind who will take over the business. By drawing up an entrepreneurial plan, the ideas of the current director / major shareholder and the successor can be combined to arrive at the best outcome.
The third and final step is to transfer. It is time for the departing entrepreneur to pass the helm on to his or her successor. Many entrepreneurs, after leaving the company, become advisers or commissioners. This way he or she can assist the successor. However, if no successor can be found, there are several options. Buy-out or buy-in from management, sales to third parties or closing the company.
If you want to finance, you can submit an application for a unsecured business loans at https://acfa-cashflow.com. When we have received this correctly and completely, you will usually be contacted within 48 hours about the possibilities.
We only provide business loans. Unfortunately, if you do not meet the sales requirement, we cannot help you further.
Start on time
Many entrepreneurs are worried about when they have to give up the company. They may have set up the business themselves and made it a success, or it is a family business that is highly valued. Many entrepreneurs, therefore, see their company as their ‘child’. Something that put a lot of energy and time into it, and which is difficult to let go. Moreover, it is difficult to find a worthy successor. If you have several children, it is difficult to make a choice as to which child will be your successor.
Nevertheless, it is highly recommended to start the transfer in time. Follow the steps as explained above. Make sure that you orientate yourself on who is a worthy successor. Have open and honest conversations in which you both can tell what the expectations are and what needs to be done with the company. Also, ensure that it is clear what your task will be after the business transfer. Do you want to work as a consultant? Or do you want to completely distance yourself from the company and enjoy your retirement? That is of course entirely up to you. It is only advisable to make clear agreements about this.
In addition, the timely start of the transfer has the advantage that you know what your pension will be. The value of the company determines the level of the pension for many entrepreneurs. By starting the business succession on time, you are aware of the value of your company. This ensures that you know what your assets are when you retire. And that, in turn, ensures that you know what you could do when you retire.
If you are unable to make the succession successful, it is advisable to engage an independent consultant. He or she will look with you at the options and how you can best tackle everything. In addition, it can be nice to talk about succession with an independent person. An outsider will often look at things differently than you do. In this way, you get new insights, which you can use again during business succession.
In addition, a consultant often works with a certain plan. The consultant also records all agreements in writing. If a disagreement arises, you can always look at what has been recorded in writing.
Phyll Financiers can help you
If you are an entrepreneur with a minimum annual turnover of € 250,000 and with a financing requirement, you have come to the right place at Phyll Financiers. We are an experienced financier for SMEs. We look at the form in which a loan suits your company best, but we dare to take more risks than the average financier. As a result, there are often more options than you may have in mind. In addition to financing, we are also specialized in debtor management.