Building Business Legacy: Succession Planning for Construction SMEs
What happens to a business when its founder decides to step back? Genuine succession planning is about much more than picking a successor; it’s about building a company that continues to thrive even after the founder is no longer involved in day-to-day operations. For many construction SMEs, succession planning is an uncomfortable topic, often postponed or considered something only relevant to retirement. The next chapter of any business depends not only on the founder’s vision but the systems, values, and people left behind when leadership changes hands.
Ian Morris, founder of IM Electrical Contracts, understands that avoiding succession planning puts even a strong company in danger. His experiences reveal why proactive, structured succession can transform both a business’s legacy and its bottom line. For construction entrepreneurs, this means taking a series of uncomfortable but necessary steps: systemizing operations, investing in people, and being honest about what truly creates value.
Apprenticeships, Ownership, and Lifelong Learning
One of the golden lessons running through Ian's career is the willingness to learn from every stage, no matter how modest the beginnings. “I just didn’t have a clue what I wanted to do… My dad was a draftsman, but I didn’t fancy office life,” he recalls. He entered the trades by chance, hustling in roles that spanned railway signaling, hand tools, and technical problem-solving. His breadth became his advantage, having picked up “plastering, painting, and anything and everything… useful going forward just to know all the other trades,” he observed. In today’s volatile industry, that same adaptability is essential for SME founders and their teams.
Many construction SMEs often overlook this important truth: business stability is built not on shortcuts but on the slow, often invisible work of training and reskilling, long before a formal handover happens. Owners who invest in learning multiply opportunities for their team and themselves. For businesses, developing a culture of continuous self-improvement can serve as a retention strategy, employee motivator, and the groundwork for a successful transition when the time comes.
The Myth of Overnight Systemisation
Only a few construction owners set out with robust systems or ready-to-run manuals. Ian's experience debunks the idea that systemisation is quick or glamorous. The truth is most owners “design themselves out of a job” only after years of trial and error. He puts it simply: “Get it all systemized and automated… If it works without you, [the business is worth more].” This isn’t just about boosting a potential sale price, it’s about protecting employees, clients, and the company’s reputation through predictable processes.
Documenting processes, training successors, and investing in scalable software should begin well before anyone thinks about stepping down. For Ian, this has meant handing over project management, shifting financial oversight, and allowing trusted team members to take on key responsibilities. As a result, IM Electrical’s value no longer resides with a single individual but has become embedded in its policies, systems, and people. This is a move every SME should strive for.
Leadership, Trust, and True Handover
Succession is more than just a technical task; it’s an act of leadership and a leap of faith. Ian shows that willingness to let go is as critical as any spreadsheet. “I’m sort of designing myself out of a job, which is an interesting phase of my life. But it’s the sensible thing to do,” he reflects. The modern construction SME leader shouldn’t see succession as “giving up” power, but as growing a team that can succeed independently.
Choosing successors is about more than bloodlines or titles. It means mentoring the next generation, spotting true leadership (not simply management), and opening discussions about who is best equipped for the future—not just “who’s next.” Regularly revisiting the company business plan, sharing financial dashboards, and creating a transparent, inclusive culture are all essential for engaging potential successors and avoiding shocks at transition.
Takeaway: Outlast, Don’t Outshine
In the end, a founder’s real legacy is measured not by the company’s dependency on them but by its ability to grow and adapt after their exit. As Ian points out, “10x just means 10x your headache” if you don’t have the right foundation. For SME construction leaders, the challenge is to invest in people, codify their wisdom, and stay involved as long as their leadership brings value—not just until their last day at the desk.
A strong succession plan is an investment in stability for employees and owners alike. Construction businesses that outlast their founders are built on honest reflection, steady leadership development, and the courage to embrace change before it is forced upon them.
This article draws insights from the featured episode: Systemizing Your Construction Business on the I'm The Gaffer podcast. Stay tuned as we explore the challenges and opportunities in construction—where success is crafted with expertise, innovation, and dedication.
