Business succession and spirituality – What lessons can Ramadan and Lent teach business owners?

Taking place simultaneously, Lent and Ramadan are times of spiritual reflection and sacrifice that will have an impact on roughly half the world’s population.

Both of these traditions involve adjusting how life is lived now in the hopes of making a life beyond this one better.

In that sense, business succession follows a similar path as it involves taking time now to prepare for a time when you are no longer the one in charge.

When is a good time to start thinking about business succession?

Even if your business is only just getting started, it is not too early to think about business succession.

You can take inspiration from the younger people who are engaging with Ramadan and Lent to prepare for an event that may be many years in the future.

Most succession strategies are truly effective when they have also been given years to come to fruition, so it is worth understanding what preparations you should be making now.

What business succession strategy is right for me?

It can be challenging to determine the most effective business succession strategy, but a lot of the decision will come down to how you want your business to look after you have moved on.

For many business owners, family succession is a good option for keeping what has been built in the family so that their relatives can continue to benefit from it.

However, your employees may have some concerns if a previously unheard-of relative suddenly assumes control over the business.

To avoid criticisms of nepotism, it may be more helpful to introduce the relative to the business slowly so that they can learn the operations over time.

They will also get to know the team and hopefully ensure a smooth transition when the time comes for you to leave the business.

If preserving the culture of a company is important, you may want to consider a Management Buyout (MBO) or an Employee Ownership Trust (EOT).

This is where the business becomes controlled by managers or the employees more generally and is a good way to reward those who have worked to build up the business.

Yet there is a difference between working in a business and running it at a high level.

As such, it is worth guiding your employees or managers on what they will need to know while you are still a part of the business, so that your business will be managed effectively going forward.

Of course, it is also possible to sell to an external party, but even this option requires months or years of planning.

If you do want to sell your business, you will want to get the most value out of the sale.

Keeping your finances strong for many years and ensuring your team is ready for a change can help new owners commit to a sale with confidence.

Is early succession planning effective?

In order to keep the full range of options on the table, it is best to start planning as soon as possible.

Seeking succession advice from our expert team can be an effective way of ensuring the legacy you have built is preserved when it is time to move on.

If you are struggling to know the future of your business, then our support may feel like a prayer getting answered.

Save yourself from the stress of business succession strategies by speaking to our team today.