Capital value lies in certainty but, at times, legacy in family businesses is uncertain.

Active Knowledge Question:

Are your succession plans supporting the capital value of your business?

Capital value, in essence, is reflected in the ability of your business to earn an enduring income. And that value will move according to the level of certainty that exists in the future. The more certain that future profits will be there, the more likely a higher price will be paid.

One of the key assets that exist in a business that allows it to compete and earn profits is its leadership team. If a business has relied on one or more individuals for its success for many years and those individuals are retiring, then valid questions may arise as to its future prospects.

Legacy is often considered to be what someone leaves behind to remind the world of their presence. A better way to view legacy is what you are creating for the future. And your business is one of those assets that can have an amazing future built on your legacy.

But this will only occur if you invest in and create the right leadership team while you are still active in the business. The creation of such a leadership team is your legacy.

Succession commences the day your business starts. Building a team in your business that can successfully run it without you ensures its future and continuing employment for everyone in your business.

It underpins the capital value and the continuation of the business you have built and can become a living legacy to your life’s efforts. 

An entirely new level of performance

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All the best in the success of your business,

Richard Shrapnel