Business owners should prepare succession plan

Will your business continue to run if you are not performing the work?

Do you own a business or are you self-employed?

If the business depends on the talent of the business owner to be there and perform the work, then the person is just self-employed.

As an entrepreneur, the mindset and therefore the daily tasks are slightly different.

As an entrepreneur, your daily routine is working on designing the systems to keep the business running, and then putting those systems into action.

In both cases, the self-employed or entrepreneur might work 50-80 hour weeks. The self-employed person works to make money, while the entrepreneur works at making money work for him.

Another way to look at this is what is your business worth without you.

Will your business continue to run if you are not performing the work?

There has been ample discussion recently about our aging population; the impact it has on our health care system, our education system and a variety of services.

There is an impact to the business owner if they are preparing for retirement and wish to sell their business.

If the business is only viable with your particular skill set then there is a very limited market to sell the business to. If the business is viable to anyone with good business skills then the market expands and with that expansion the amount the business is worth increases.

When you started your business you should have had a business plan, complete with a financial plan and a marketing plan.

As you start to look to retirement you should be developing a succession plan.

That may mean bringing someone in to your business to train to take the helm or ensuring you have well trained staff in place who will carry the work forward with a new owner or it could simply mean ensuring that you have been able to invest funds gained from the operation of the business invested to provide you with the retirement you hoped to have when you entered the business world.

Aging business owners present similar challenges as an aging workforce and the adage “failure to plan is planning to fail” applies in the same way that failure to have a business plan in place when you start a business does.


— Kim Burden is the executive director of the Parksville and District Chamber of Commerce

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Terry Keogh, an RDN Transit driver, used his paramedic skills the morning of Jan. 22 after coming across an unconscious woman along his route in downtown Nanaimo. (RDN Transit photo)
RDN Transit driver stops his bus and helps get overdosing woman breathing again

Former EMT from Ireland performed CPR on a woman in downtown Nanaimo on Friday

The intersection at Moilliet Street and Despard Avenue where a 12-year-old boy was struck by an oncoming vehicle early November while crossing at a marked crosswalk. (Mandy Moraes photo)
City staff members, school district officials to discuss high-traffic Parksville intersection

Young boy suffered broken leg after being hit in Despard/Moilliet crossing

Toronto Public Health nurse Lalaine Agarin sets up for mass vaccination clinic in Toronto, Jan. 17, 2021. B.C. is set to to begin its large-scale immunization program for the general public starting in April. THE CANADIAN PRESS/Frank Gunn
B.C.’s COVID-19 mass vaccinations expected to start in April

Clinics to immunize four million people by September

Chief Public Health Officer Theresa Tam speaks during a daily briefing in Ottawa. (THE CANADIAN PRESS/Adrian Wyld)
31 cases of COVID-19 variants detected in Canada: Health officials

Dr. Theresa Tam made announces 13 more variant COVID-19 cases in Canada

Daily COVID-19 cases reported to each B.C. health region, to Jan. 20, 2021. Island Health in blue, Northern Health green, Interior Health orange, Vancouver Coastal in red and Fraser Health in purple. (B.C. Centre for Disease Control)
B.C.’s COVID-19 infection rate stays stable with 508 cases Friday

Vaccine delivered to more than 110,000 high-risk people

Black Press file photo
Investigation at remote burned-out Vancouver Island cabin reveals human remains

Identity of victim not released, believed to be the owner of an SUV vehicle found parked nearby

Angela Waldick is the new team photographer for the Nanaimo NightOwls. (Nanaimo NightOwls photo)
Half-blind photographer will help new Island baseball team look picture-perfect

Nanaimo NightOwls say legally blind team photographer is making history

The District of Saanich’s communications team decided to take part in a viral trend on Thursday and photoshopped U.S. Senator Bernie Sanders into a staff meeting photo. (District of Saanich/Twitter)
Bernie Sanders makes guest appearance municipal staff meeting in B.C.

Vancouver Island firefighters jump on viral trend of photoshopped U.S. senator

School District 57 headquarters in Prince George. (Mark Nielsen, Local Journalism Initiative Reporter)
Prince George school district settles with sexual abuse victim

Terms were part of an out-of-court settlement reached with Michael Bruneau, nearly four years after he filed a lawsuit

Surrey provincial court. (File photo: Tom Zytaruk)
New COVID-19 protocols set for provincial courthouses

The new rules were issued on Jan. 21, and took effect immediately

Dog owners, from left, Marlyn Briggs with Nayla, Marjory Sutherland with Effie and Mick, and Christina Godbolt with Conon walk their pets frequently at the Chemainus Ball Park but are growing increasingly concerned about drugs being found discarded in the area. (Photo by Don Bodger)
Puppy rushed to emergency 3 times after ingesting drugs in Chemainus public spaces

Dog owners walking in Chemainus parks urged to take caution

Most Read