The Dilemma of Letting Go
Succession and exit planning is one of the hardest decisions SME owners face. Decades of sacrifice and identity are wrapped into the business. Letting go can feel like erasing part of yourself. Yet failing to plan brings real risk. Staff feel uncertain. Customers start to drift. The value of your life’s work begins to fade.
Peter, who runs a manufacturing business in Hamilton, delayed this conversation for years. He promised himself he’d deal with it “soon.” Then his health took a hit. Without warning, the business was vulnerable. Staff became anxious. Suppliers raised questions. What could have been a steady transition turned into a stressful scramble.
Why Succession Creates Anxiety
Pivotal People often hear that succession triggers a complex mix of fear, uncertainty and regret. It’s not just a financial decision – it’s emotional.
Key challenges include:
Struggling to separate identity from the business
Worrying the years of work won’t be valued fairly
Navigating family tension around who takes over
Doubting whether anyone else can maintain success
Lacking clarity around valuation and sale options
Fearing what life looks like after exit
Peter’s reluctance is common. Succession is easy to postpone when it feels like loss instead of legacy.
Rethinking the Issue
With guidance from Pivotal People, succession gets reframed as evolution. The goal is not to walk away, but to pass the baton with purpose. Good exit planning protects the business, the people in it and the value built over time.
This is about stewardship. The business doesn’t end – it continues, just with less reliance on you.
What Pivotal People Recommend
Begin well before you need to. Five years is ideal. This allows options, not panic.
Get a clear valuation. Knowing what your business is really worth grounds decision-making.
Explore the full range of exits. Whether that’s family succession, management buyout or sale to a third party, every path has trade-offs.
Build your team’s capability. Prepare future leaders. Value rises when success isn’t tied solely to you.
Strengthen internal systems. Clean up compliance, document key processes and tighten operations.
Rebuild identity outside the business. Cultivate hobbies, relationships and interests now, not later.
Bring in outside advice. Succession advisors, brokers and accountants offer insights you won’t find on your own.
Planning avoids regret. Without it, the exit gets shaped by circumstances instead of your values.
Case Study – Peter’s Turning Point
Peter eventually sat down with a succession advisor introduced by Pivotal People. Together, they created a five-year plan that included leadership development, stronger governance and operational handover. Over time, his second-in-command took more ownership. Peter stepped back from daily operations and reconnected with life outside the factory.
When the time came to sell, he chose a management buyout. It wasn’t the highest financial offer, but it aligned with his values. The staff stayed employed, and the business continued. His peace of mind came from preparation, not luck.
Case Study – A Waikato Farming Family
A multigenerational agri-business in the Waikato reached breaking point. The eldest son assumed he would take over. His siblings disagreed. Conflict escalated. A facilitator from Pivotal People stepped in, helping the family create a governance plan with clearly defined roles and a fair compensation framework.
Ownership transitioned gradually, with clarity and buy-in. The farm remained in family hands. Relationships were preserved. The key wasn’t speed – it was transparency and structure.
The Emotional Weight
Succession stirs deep emotion. Owners fear losing purpose. Families fear being treated unfairly. Staff fear job loss. Without a plan, those fears take over.
Owners often feel stuck between guilt, uncertainty and pride. They want to do the right thing but don’t know where to start. Pivotal People help take the emotion out of the driver’s seat and replace it with structure and perspective.
When succession is handled well, relief sets in. Owners find space to contribute in new ways – through mentoring, investing or simply enjoying life again.
Wider Context for NZ SMEs
New Zealand faces a significant transition. Thousands of SME owners will reach retirement age in the next decade. Many still have no formal succession plan. This creates risk not just for individual businesses but for communities and industries.
Rural sectors are especially exposed, where the business often ties closely to land, family and generational knowledge. Support is growing through business chambers, industry groups and succession advisors like Pivotal People.
Still, a cultural barrier persists. Many Kiwi owners pride themselves on doing it all themselves. Asking for help feels awkward. Yet planning well is not weakness – it’s smart leadership.
Measuring Progress
You’ll know you’re on the right path when:
A written succession plan exists, shared with key people
The business can run without daily input from you
Staff feel stable, not uncertain
Your valuation is based on facts, not guesswork
You’re curious and hopeful about what’s next
Peter saw this progress when he returned from a three-week holiday to find the business steady and staff confident. The Waikato family knew when succession planning no longer dominated every family gathering.
A Final Thought
Succession is not about disappearing. It’s about passing on value with intention. Your business can continue to thrive, even without you at the centre. That’s not loss – that’s legacy.
With planning and support from people who’ve seen it before, the process becomes achievable. Pivotal People walk owners through the uncertainty and into clarity. Sleep comes easier when you know what’s coming next – and that your business, your people and your future are in good hands.
