HWK Stuttgart. Business Succession In The Craft

Business succession: The numbers speak plainly: Almost 30,000 craft businesses were registered with the Stuttgart Region Chamber of Crafts in early 2020 - more than in a long time. An estimated 5,000 of these companies are managed by an owner who is older than 60 years

It is time for these entrepreneurs to think about the company: handing over to children or employees, selling, giving up? The Chamber of Crafts offers a whole package of support and service measures for this. The consultants are therefore in demand as contact points. Almost 300 one-on-one consultations with older owners come together every year - another 170 consultations are required to discuss business start-up plans.

Chamber boss Hoefling shows the economic importance of the continuation of craft businesses. “The craft secures jobs and training places and is an important factor for the local supply of the population. Everyone knows that craft businesses provide services that make a significant contribution to the stability of the overall economy and comfort.

In order to cope with demographic change, SMEs and handicrafts will be more dependent than ever on innovative and creative entrepreneurs. “Our country needs these dynamic and determined young people with good ideas. Successful company takeovers not only preserve jobs, but often create new ones and generate higher tax revenues. They help the economy to become more dynamic, accelerate the necessary structural adjustment processes and often lead to new, innovative products and services that are of great importance for the competitiveness of the economy.”

Business succession: Master as a solid qualification

Thomas Hoefling knows: “Establishing and taking over a business are part of the DNA of the craft. For many craftsmen, being self-employed is part of their self-image. That is why many young tradesmen also take the master craftsman examination in order to bring their tailor-made qualifications with them.”However, in recent years, start-ups have also become more and more difficult and complex, especially in professions requiring master craftsmanship. "But if we have fewer start-ups and fewer successors, that will weaken the economy."

In addition, it was crucial not to slow down the enthusiasm of people willing to found a company through a thicket of regulations and to nip the motivation to found a company in the bud. Rather, professional self-employment must appear attractive to young people, then they would take the step into self-employment. Hoefling: “We see a need for action in the currently insufficient awareness and activation for the topic of independence as a whole. A new way of thinking is needed: independence must be made attractive in the long term and given greater esteem in society.”For this, a feeling for entrepreneurship and entrepreneurial thinking must be conveyed at an early stage. "We keep stating - for many students and adolescents this is unfortunately a completely blank sheet."

Some support measures for the skilled trades are going in the right direction: The master bonus of 1,500 euros newly introduced in Baden-Württemberg from 2020 and the start-up and takeover bonus are encouraging. Successful graduates of a master's examination will now receive the bonus. "The introduction of the master craftsman bonus is a strong sign of the promotion of skilled workers and the equivalence of vocational and academic education," commented Chamber Chief Hoefling. In addition to the master bonus, there will also be a master start-up and take-over bonus from 2020: “If the baby boomers gradually drop out of working life in the next few years, there will be a huge generation change. The bonus should motivate even more to take the step into self-employment."

Business succession: Develop concept with experts

Neutral and competent advice on business transfers is part of the comprehensive business advice service provided by the Chamber of Crafts. Thomas Schmitt, ESF-sponsored moderator for company succession, knows the individual steps: “Together, a handover concept is developed, in the implementation of which the right experts are involved. The goals are defined, the economic situation of the company is analyzed, machines and equipment are evaluated if necessary, the company price is assessed and questions of trade law are clarified. Financing, tax aspects, "where is which tax payable for whom?", "What about your own pension scheme and new personal perspectives?", "Which legal form is chosen?","How can employees best be involved in the handover?" Or "Are there any grants for the transferee?" Are questions that need to be discussed. "All topics, including the emotional effects, would have to be carefully examined in order to understand the individual handover process prepare well.

Together with a network of specialists from banks and tax consultants, optimal solutions for both parties, the previous boss and the successor, are developed. "This interplay of experts is fundamental to the success of a takeover," emphasizes Schmitt. "Our experts are committed to neutrality. The chamber takes no advantage of it. The partners decide with which bank, with which tax consultant or with which lawyer. Our focus is on accompanying the process and serving our member companies and successors optimally and accompanying successful companies into the future."

Business succession: Don't underestimate the time factor

The experienced consultant warns of impatience. "The handover is not a short process, but a process that takes time." You should invest at least five years in the search for a suitable successor and plan the handover with him. It can take up to ten years from the first considerations about planning, the search for a suitable successor, the negotiations and finally the implementation. “It is of course crucial that there is a successor. That can be within the family, but capable young masters are often also interested among the employees,”explains consultant Thomas Schmitt. If there is no suitable candidate in sight there, all that remains is to look for an external successor. Supply and demand can be brought together via the company exchange. "Of course it is importantthat everyone involved really knows what they want. The company succession is associated with a lot of emotions and these personal aspects must also be taken into account. “That is a basic requirement for good and lasting success.

At start-up seminars held by the Chamber of Crafts, start-ups can get an overview of the start-up formalities, support programs, the business plan and the topic of taxes. They take place on March 10, April 7, May 12, June 16, July 14, September 15, October 13, November 10 and December 8.

www.hwk-stuttgart.de/nachgabe, www.hwk-stuttgart.de/starthilfe2020