An Expert Partner blog featuring CH4B Expert Partner, Kinherit.
Content Directory
- Chris Gault explains business security
- What happens when you aren’t prepared?
- Actionable steps to secure your business’ future
- Complimentary Strategy Call with CH4B
Do you have a plan that will ensure the continuity of your business in the face of unforeseen circumstances, such as death or incapacitation?
Without a robust succession plan, your business may face operational disruptions, financial instability, or even closure. Statistics reveal that many SMEs lack adequate succession strategies, leaving them vulnerable during critical transitions.
Chris Gault, CH4B Client Services Director and Strategic Business Coach, explains further:
“When I start working with a CH4B member, during the onboarding process I always ask ‘What would happen if you weren’t around?’. Whilst it might seem like a dark way to start strategising business security, it is so often overlooked. Whether you’re in a partnership or a sole director, it’s important to consider next steps to ensure that all of your hard work and effort is handled as you’d wish in the event that you can no longer run the business.
We work with our members to develop comprehensive business plans that include ‘worst case’ scenarios, and we work with specialists to ensure that legal matters are handled with precision.”.
CH4B’s Expert Partner, Kinherit are STEP qualified estate planners. In an unregulated industry, it’s reassuring to know that they are aligned to the gold standard qualification body for wills and trusts in the UK. This is just one of the reasons we vetted and verified Kinherit for their excellent service to SMEs and our members.
Kinhert work with SME business owners to secure the future of their estate, and their one of a kind ‘Kinvault’, a secure online handover platform ensures that in the event of death, the individual’s wishes are efficiently carried out.
What happens if you aren’t prepared?
If the worst happens, and you don’t have a Will, Trust or Lasting Power of Attorney in place to execute your wishes, authorities can cease control of your business, your accounts, and in extreme cases where your estate includes dependent children, they could be taken into emergency care. At home, your partner could be left without access to accounts that pay bills, and in the case of your business, staff or suppliers may not receive payments.
It’s vital that business owners plan for the future from the very start of their business journey to prevent any unnecessary and stressful interruptions.
Here are actionable steps you can take to secure your business’s future…
1. Develop a Comprehensive Succession Plan:
- Identify Potential Successors: Determine who is best suited to take over your role, whether it’s a family member, key employee, or external candidate.
- Define Roles and Responsibilities: Clearly outline the duties of the successor to ensure a smooth transition.
- Establish a Timeline: Set a realistic timeframe for the transition process, allowing adequate time for training and adjustment.
2. Implement Legal Safeguards:
- Create or Update Your Will: Ensure your will reflects your current wishes regarding business succession.
- Set Up Trusts: Utilise trusts to manage business assets and provide clear instructions for their distribution.
- Establish a Lasting Power of Attorney: Appoint a trusted individual to make decisions on your behalf if you’re unable to do so. Did you know that there are different types of Power or Attorney, and that you can appoint more than one? Lasting Powers of Attorney can make financial and health and wellbeing decisions, whereas Eduring Powers of Attorney can only make property or money decisions.
3. Engage Professional Services:
- Consult Estate Planning Experts such as Kinherit who offer tailored advice to protect your business and personal assets. Kinherit will also conduct a free review of any current Will that you have in place.
- Utilise Secure Handover Platforms: Leverage technology to ensure that all critical information is accessible to your successors, such as Kinherit’s Kinvault. More on this here:
Proactive succession planning is essential for SME owners aiming to secure their business’s future against unexpected events. By taking deliberate steps and consulting with professionals, you can ensure that your enterprise remains resilient and continues to thrive, regardless of the challenges that may arise.
Take the next step with CH4B and Kinherit
CH4B can help you to create a strategic business plan, and introduce you to Kinherit, our estate planning Expert Partner. Book a complimentary Taster Strategy Call here to find out more:
