Succession Planning
Let us share a story with you …..

Around 40 years ago a proprietor commenced a rather unique specialist consultancy firm that offered an ever growing range of services to its clientele. Unlike retail or manufacturing businesses, the services of this business were heavily dependant upon the expertise and knowledge developed by the proprietor and their senior personnel.

Over the years, the proprietor had a number of attempts at developing a successor, without much luck. As the proprietor grew older they were resigned to the fact that the legacy of the business would end with them. Generally, the business would be considered unsalable without a proprietor or someone equivalent.

As the business owner approached their mid to late 50’s, a young 20 something year old joined the business. Initially intended only to be a short term placement, their employment became much longer term as they came to realise the potential before them. The opportunity to eventually hold ownership of this exciting and dynamic business was a dream. Hence a succession plan was borne.

Within a couple of years of committing to this plan, it was recognised that significant development in the skills and expertise of this successor would be required. So, a mentoring program between the senior proprietor and their future successor commenced. The proprietor made conscious efforts to develop the necessary skills and expertise of the successor.

Three years into the program the proprietor fell ill. The diagnosis was cancer and, while he proactively fought the disease, he lost his battle some nine months later.

Whilst this was a tragedy, the one positive outcome was that the proprietor had spent a significant amount of time mentoring and developing his successor. Confidently, the successor was able to step up and take over the business, ensuring its continuation. Today, the business continues to flourish.

This is our story ……….. Rob always joked that he had the longest succession plan possible…… he bred his own successor in his daughter Michelle.

All jokes aside, you may ask why we would share this with you. Well, for many reasons really.

It helps to explain our passion for proactive succession planning. It also demonstrates that we have experienced succession planning first hand and therefore truly understand its importance.

We have worked with numerous practitioners over many years who have planned well for their succession; and also those who have not had an exit strategy at all. As a result, we have experienced the outcome on both sides of the equation. A well executed succession plan enables the most successful outcome: continuity of the practice and peace of mind for the practitioner’s family.

Regardless of your age, it is never too soon to start thinking about your succession.

We welcome the opportunity to discuss this with you. Please contact Michelle on (02) 9233 4333.

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