Business Continuity: Mission Possible

Business continuity is often overlooked, even though it is the foundation of long-term sustainability. Data from a PwC survey in the US shows that only 34% of families with a business have a clear, documented and shared ownership handover plan. This is an alarming signal that highlights how many owners are not prepared for the future of their company. Without a strategic approach, years of work and effort could be at risk.

If you’re a business owner too, think about it – what would happen to the company if something unexpected happened tomorrow? Are you prepared?

How to be strategic

1. Start early

Handing over management and ownership to the next generation is a long process. It’s best to start at least a decade in advance to allow enough time to select and train the right person, as well as put the necessary processes and systems in place.

2. Ensure clarity and transparency

When roles and expectations are clearly spelled out and discussed, it reduces the risk of misunderstandings and tension. Transparent communication is the foundation of a smooth transition.

3. Separate the personal from the professional

Transitioning a business between family members can have tax and logistical advantages, but it also carries risks. It’s important to set boundaries and procedures that ensure emotions don’t get in the way of governance.

4. Prepare for different scenarios

Life is unpredictable. A sustainable succession plan includes options for unexpected events – health problems, candidate failure or economic crises. Flexibility is key.

A strategy for a stable future

A well thought-out succession plan contains several important elements: identifying future leadership needs, recruiting an appropriate successor, and creating opportunities for their development through mentoring and participation in governance.

Regular updating of this plan is as important as its creation. Businesses and circumstances change, so the plan must be a “living” document. Working with experienced attorneys and financial advisors will help you avoid legal and tax pitfalls.

Dealing with the emotional aspects

Family dynamics often complicate the process. Differences in vision, ambitions and management styles can create tensions. It is therefore advisable to have important conversations in a constructive environment, sometimes even with the help of an external mediator to lead family meetings and facilitate dialogue.

Many owners experience internal conflict about ceding control, but the topic should not remain taboo. Only when these fears are discussed openly can a sustainable solution be reached.

Business continuity is not just an administrative process, but a strategic decision that ensures sustainability, preservation of values and a stable future for generations to come. Without a clear plan, open dialogue and timely preparation, even the most successful business can face disruption. That’s why every owner must proactively invest not only in the company’s growth, but also in its smooth transition forward.

TPA Bulgaria

+359 2 981 66 45/46/47

office@tpa-group.bg

128, G.S. Rakovski str, floor 2

1000 Sofia