BUSINESS DEVELOPMENT www.images-magazine.com 24 images OCTOBER 2026 Expert advice on the business of running a garment decoration company When and how should I start succession planning? Succession planning isn’t just paperwork for retirement; it’s what protects staff, customers and the value you’ve built. For SMEs in particular, where so much knowledge and so many client relationships sit with a handful of people, the lack of a plan can turn a manageable transition into a crisis quickly. The good news is that starting doesn’t require a finished strategy but can begin with a first honest conversation. One of the biggest misconceptions is that succession planning is something you do when retirement starts appearing on the horizon. I see it differently. Succession planning is about making sure that you, your family and your business are prepared for the future. You don’t need to know whether that future will eventually involve passing the business to your children, selling it, undertaking a management buyout or simply stepping back from its day-to-day running. The earlier you start building options, the more control you’re likely to have over what happens next. For me, there are five areas every owner should start thinking about. 1 Future vision: What do you actually want? What do you want your life to look like in five or 10 years’ time? Retired? Work fewer days? Keep the business in the family? Sell and do something different? If you’re a family business, there’s another question: what does everybody else want? Starting the conversation early gives you time to explore the possibilities rather than having circumstances dictate them. 2 Leadership: Could the business run without you? If you disappeared for three months tomorrow, what would happen? Who would make the decisions? Who holds the key customer relationships? Who understands the numbers? Many successful SMEs have been built around an incredibly capable founder or owner, but that strength can become a dependency. Developing people, sharing knowledge and giving others genuine responsibility doesn’t diminish the owner’s importance; it builds a stronger business around them. 3 Ownership: Don’t confuse working in the business with owning it This becomes particularly important in family businesses, where ownership, employment and leadership are three different things that can easily become intertwined. A son or daughter may be a brilliant future leader, but does that mean they should be future majority owner? Another family member might make an excellent shareholder without wanting to work in the business at all. There is no single correct model. The important thing is to start discussing ownership before you’re forced to make decisions about it. Who might own the business in the future? What responsibilities come with ownership? What happens in case of divorce or death? How will decisions be made? And importantly, is that what the next generation actually wants? 4 Governance: Give the business some structure Governance can sound terribly corporate but it might simply mean having proper management meetings, clearer roles and responsibilities, reliable financial information, agreed decision-making processes and perhaps eventually an advisory or formal board. Good governance helps a business become less dependent on personalities and more capable of making consistent decisions. It also gives the next generation or future leadership team something solid to inherit. 5 Family communication: Start the conversations while they’re still easy Perhaps the most important part of succession planning has very little to do with spreadsheets, tax or legal structures. It’s conversation. I’ve seen how easily assumptions build within family businesses. Dad thinks his daughter wants to take over. She thinks Dad will never really let go. One sibling believes ownership will eventually be divided equally. Nobody is necessarily beingdifficult; they simply haven’t talked about it. These conversations become much harder once there’s a health problem, an unexpected offer for the company or somebody suddenly deciding they want to retire. Start talking while you have the luxury of time. Succession isn’t an event that happens on a particular date. It’s a process of gradually building a business with strong leadership, clear ownership, appropriate governance, open communication and a shared understanding of where it’s heading. Get those foundations right and something else happens too: you build a better business today. One that is less dependent on you, that develops its people, and that gives you far more choices when you eventually decide what comes next. So if you’re wondering when you should start succession planning, my answer is simple: before you need to. Mel Archbouldis founder of Cloud-Busting and an executive business mentor specialising in ownermanaged and family businesses. After spending 17 years as second generation managing director of her own family engineering business, Mel now helps business owners navigate growth, succession and exit, and prepare their businesses and families for whatever comes next. www.cloud-busting.com Q&A
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