Succession refers to the transfer of the ownership and/or management of a business.
Ownership succession focuses on who will own the business, when and how that will happen.
Management succession focuses on who will run the business, what changes will occur and when the new manager will be accountable for the results.
Ensure that you are aware of all alternatives and the benefits of each before deciding on your exit strategy.
By not having a succession plan in place, there is potential for many things to go wrong.
For example, you may be looking to retire in 5 years time. By thinking about succession now, you will get a feel for what your business might be worth and who it might be sold to. Better to be surprised now while you can do something about it!
Tax implications on transfer should also be thought through now increasing the chance of minimisation when the time comes.
Succession planning can also help avoid family conflict after you've departed.