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Roddy Harrison is a partner at Wright, Johnston & Mackenzie LLP

Many entrepreneurs have had a particularly challenging time. Many have faced uncertainties about their future for months and spent most of the last year wondering how their businesses will continue to be affected by persistent restrictions.

Some business owners have been so busy focusing on the here and now, making sure that their business can survive day in and day out, that they have run out of time to think about the future.

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On the flip side, there are many who have taken a step back, looked at the bigger picture, and realized that their business is not invincible. Some may have reassessed their priorities after such an unpredictable year and found they are fed up with the pressures of being entrepreneurs. Perhaps they have chosen to retire early and are now turning to the future of their business.

I always stand by the old adage that the best time to think about succession for your company is yesterday. However, if you haven’t gotten around to it yet, today is a good start. Many business owners delay this because they are too busy with the ongoing needs and operational side of a business that they simply do not prioritize planning for the future.

Waiting until it’s too late to oversee the handover of your business is the worst possible option. The best scenario is to plan this moment, stay long enough to oversee a seamless transition, and then take the opportunity to retire.

Planning for the future is especially important for family business owners, who are often faced with a number of unique succession challenges.

As a business owner, the first question is who will be your successor? There are different possibilities. You can either sell the company on the open market and make a full exit, move to an employee ownership model, or give the company to family members through shares.

In every family business, it is important to understand who is doing what and where everyone’s expertise lies. There is a lot to consider. A relatively young member of the team may have little to no management experience, but may have important knowledge in certain areas of the sector that are critical to the future success of the company.

Some family business owners have some children who work for the company and others who don’t. In this scenario, ensuring fairness can be challenging. It is important to avoid disputes and to consider how succession will affect family relationships and what the ownership structure will be like in the future.

Planning a variety of outcomes and scenarios is important to make sure you’ve covered all of the basics and have a solid understanding of the future of the business.

Competent advice from an external consultant can be of great benefit here. An impartial advisor can be of great benefit as he can assess the situation with fresh eyes and without preconceived notions about the company or its team members.

As a law firm, we can provide advice to ensure that any business transition is legally watertight, and our colleagues at Family Business Solutions can advise you on how to ensure a smooth handover and monitor the relationship management aspects of a succession plan.

Future planning is the best form of insurance for your company. When something unexpected happens and a business owner cannot return to work for some reason, a solid succession plan means that the organization will not be compromised. Even if retirement is still a long way off, it is never too early to be prepared for the future.

Roddy Harrison is a partner at Wright, Johnston & Mackenzie LLP. Family Business Solutions Ltd is the advisory arm of Wright, Johnston & Mackenzie LLP.