Cumbrian business owners are being urged to ensure they have a succession plan in place.
The latest Family, Privately-owned and Owner-managed Business Survey from Armstrong Watson has revealed that many firms have not considered their exit plan.
In Cumbria, 23% of respondents said they plan to pass on the business to their children, but 64% have not discussed this with the next generation who are already in the business, which is slightly higher than the national average.
Meanwhile, 15% of business owners don’t know how they see themselves leaving their business.
The accountancy, business and financial advisory firm has provided a first glance at some of their initial survey findings ahead of a full report due to be released later this summer.
The survey is the fifth of its kind and comes 18 months after the previous one conducted in late 2023.
It seeks vital insights from businesses about their people, technology, innovation and growth as well as planning to let go.
As with previous surveys, the results will be used to spot trends, highlighting issues and opportunities and areas where businesses may need assistance.
The full summary is then compiled into a free downloadable report and distributed to key influential stakeholders across the UK to ensure that the views of the family, privately owned and owner-managed business community are heard and are front of mind.
A total of 857 businesses across the UK, and from a variety of sectors, shared their views – doubling the response rate compared to the previous survey.
The majority of respondents are limited companies, and most are first-generation businesses, with an average of 51 employees.
Among the initial survey findings, nationally, a lack of succession planning was found among some businesses, with 16% who haven’t considered their exit plan, and while 21% plan to pass the business to their children, 61% of businesses where the next generation is already in the business, haven’t discussed succession.
A statistic worthy of note in light of proposed changes Inheritance Tax (IHT) reliefs.
Paul Dickson, Armstrong Watson’s CEO and managing partner, said: “The initial findings from our survey highlight a number of areas where businesses are in need of support.
“One area of concern is that some businesses have no succession plans in place. For those who plan to pass on the business to the next generation, it is particularly important that they start exploring their options and make steps to reduce their IHT tax exposure with careful planning to achieve the best outcome possible.
“We’d like to thank all those who took the time to complete our survey and look forward to sharing our full report of the findings in the coming weeks. This gives us a vital insight into businesses that play a crucial role in our economy and helps to identify how they can best be supported.”
