According to research, a succession plan has not been put into place by 64% of small businesses within the UK.

1,002 responses were polled by small business lender Aldermore. The majority of these responses shown that decision-makers had not put a plan in place that would ensure a smooth and efficient running of their business.

62% of these responses shown that exit strategies were not put into place and 29% of those highlighted on the fact that unless their business was liquidated, they wouldn’t leave.

The percentage (42%) of those who did have a succession plan in place said that in the next four years, their reins would either be passed down to senior executives (25%) or family members (23%). Whilst in this same four year period, one in five decision makers want to sell their business to another company.

Nigel Holland quoted:

“It is not easy running a business, it takes up a lot of time and hard work. Changes to key executives can occur and have a massive impact on the running of the business. Therefore it is crucial that succession strategies are put into place to avoid the business from down falling.”