Succession planning is an integral, but often overlooked, aspect of small business management. It involves strategically identifying and developing potential leaders to ensure continuity during transitions. 

Given the tight-knit structures of small businesses, a leadership change can pose significant operational challenges. A comprehensive succession plan is therefore critical for future-proofing your business. 

We went through that planning process three years ago when Rupert decided to retire and hand the business on to Michael. We learned a great deal during that time, particularly as we are a family-run business. 

Aaron Taft talked with Rupert and Michael Carthy about their own experiences of exit planning and succession. 

Rupert, how did you feel about letting go of the reins? 

It was quite easy for me. I’d been planning it for eight years and had brought Michael in with succession in mind. Michael and I had worked very closely during those years, so I was totally confident that I had left the business in a safe pair of hands. 

Michael, how did you feel about taking over the company? 

There was a lot of trepidation at the start as Rupert had built such a solid business, however, I knew that due to his guidance in the transitional phase, he was leaving me and the team in a secure place. 

Rupert, have you looked back? 

Only from the plane window! I knew it was the right time for me to step back as I wanted to fulfil my ambitions by spending more time on holiday exploring the world and working less. When the time came for me to leave, I knew I had the right things in place and as a result, I was able to walk away confident of the firm’s future success. 

Michael, having worked so closely with Rupert for such a long time, how does it feel now you’re flying solo? 

Initially, I won’t lie, it felt lonely as we had been each other’s co-pilot, but as we shared the same core principles, the culture for the team and the clients have remained constant. It is always hard to take on the lead role, particularly when he had such respect from the team, the clients, and the business community, but because we had planned everything very carefully, the transition has been smooth. 

Rupert, are you happy in your retirement? 

The most important things in deciding to retire are knowing when is the right time to do it, and making sure you can afford it. Negotiating an appropriate deal on exit can be a challenge, and just because it’s family, it doesn’t mean you are not able to capitalise on the hard work you’ve put in over many years in building a sound business. 

Michael, do you feel you got a good deal? 

Yes, I was taking over a fantastic business at the right time and a fair price. 

Rupert, where do you see the business going? 

Onwards and upwards. I know it will continue to develop which is hugely important as nothing stands still for long. Technology now plays a key role in all our lives and the business is already light years ahead of many of its local and national competitors. I know Michael will flourish because, as he said before, we share the same core principles. 

Any final words of advice? 

Rupert - it’s never too early to start planning your exit but leave it flexible. 

Michael - trust your instinct, take good counsel, have a good team around you, and be bold!

Thinking ahead isn’t just an insurance against unforeseen events; it’s a roadmap for stability and growth. We are here for you and your business, whatever stage it is at! 

Contact us to talk about succession and exit planning.