Succession planning… It’s one of those topics that business owners know they should tackle, but often shove to the bottom of the to-do list. Most don’t even get around to it at all. In fact, more than 60 per cent of Aussie small business owners over 55 don’t have a formal succession plan in place. With so many founders nearing retirement, that lack of preparation could spell disaster for thousands of businesses.

One family-run business that’s doing it right is Virtual HQ. Founded almost 20 years ago by entrepreneur Mike Davison, Virtual HQ has grown into a national powerhouse, helping thousands of businesses present professionally with virtual offices and reception services. And now, the company is being steered by Mike’s daughter, 29-year-old Emma Davison, who took over as CEO following a well-planned transition.

Unlike many businesses that stumble during leadership changes, Virtual HQ hasn’t missed a beat. In fact, it’s accelerating. With new locations set to open this year and fresh energy at the helm, the business is thriving.

So, how did a physiotherapist from London end up running one of Australia’s leading virtual office providers? And what lessons can other business owners take from the Davison family’s approach to succession planning?

From physiotherapy to business leadership

Emma didn’t exactly grow up imagining she’d run her dad’s company. She was carving out her own career in healthcare, working in the NHS in London, when COVID-19 upended everything.

“I flew back to Sydney with a small bag, thinking it would be temporary, but like many people, I never returned,” Emma recalls. “It was a difficult time globally, but it also created space for unexpected change. I started out just helping where I could, but over time it grew into something much bigger.”

What began as pitching in during a crisis slowly evolved into a leadership role.

“I shared the same belief in what the business stood for, and the same passion for building something great,” she says.

Within 18 months, “helping out” became a formal handover process, with Emma stepping into the CEO role.

The origins of Virtual HQ

Mike Davison, a businessman with a knack for spotting what’s next, started Virtual HQ almost two decades ago.

“My dad has never followed the crowd; he’s always looked ahead to where the world is going and built solutions to meet it,” Emma explains. “When he founded Virtual HQ, he recognised that small businesses were looking for smarter, more cost-effective ways to present professionally and stay connected to customers.”

The business launched with virtual reception services, a professional phone answering service at a time when outsourcing was ahead of its time.

“It gave small teams the polish of a much larger operation while the business never missed any calls,” Emma says.

That early insight paved the way for expansion. Today, Virtual HQ’s services include virtual office addresses, giving small businesses the credibility and compliance they need without costly overheads.

Treating succession like a project

The key to a smooth handover, according to Emma, was treating succession as more than just a symbolic baton pass.

“We treated it like a strategic project, not just a handover,” she says. “We aligned on the vision, defined our roles early, and maintained open communication with each other and the wider team. It was about building momentum, not disrupting it.”

For Emma and Mike, mutual respect was the foundation.

“There was mutual respect from day one, and we were clear on our individual strengths, which, while different, are highly complementary.”

Emma acknowledges that many businesses stall during leadership transitions, but she and her dad deliberately avoided that trap.

“We never saw succession as a pause point. It was always about progress,” she explains. “Momentum comes from clarity: a clear strategy, clear communication, and clear belief in what’s next.”

Why founders resist letting go

If succession planning is so vital, why do so many business owners put it off? Emma says the answer is usually personal.

“For many founders, their business is an extension of themselves, so stepping back feels like letting go of identity, control, or purpose,” she says.

But she’s quick to suggest that it doesn’t have to feel like a loss. “Succession done well isn’t about stepping away; it’s about stepping into a new role, one that still adds value, just in a different way.”

Her advice to other founders thinking about stepping back?

“Start before you feel ready. Trust isn’t built overnight, and capability takes time to develop. The goal isn’t to find a carbon copy of yourself. It’s to empower someone who sees the future of the business clearly, respects its past, and can bring their own ideas to the table.”

Navigating the challenges of a family handover

Of course, running a business is never simple, and when the founder is also your dad, the complexity doubles.

“The emotional side of succession is just as real as the operational side. You’re navigating legacy, identity, and long-held habits, all while trying to lead in your own way,” says Emma.

There were bumps along the way, but Emma tells Business Builders those challenges helped her grow.

“It hasn’t always been easy, and at times it’s still challenging, but those moments have shaped me as a leader and continue to influence how I lead with confidence and clarity.”

A new leadership style

Emma may be carrying forward her dad’s legacy, but she’s doing it her way.

“I lead with collaboration, curiosity, and a strong focus on people,” she explains. “Coming from a healthcare background, I value listening, empowering others, and making thoughtful, well-informed decisions.”

Her dad, meanwhile, is “highly analytical and commercially sharp”.

The blend of their different strengths has given Virtual HQ a powerful balance.

“I’ve always understood the importance of numbers and detail in business, but I also place real weight on brand and culture. They influence how a business operates internally, is recognised externally, and ultimately scales with trust and strong foundations.”

Keeping culture and trust intact

One of the biggest risks of leadership change is losing the culture and customer trust that made the business successful in the first place. Emma says the key is consistency.

“Trust is earned through consistency; in service, in communication, and in how you show up each day,” she says. “We focused on ensuring a seamless experience for clients, while actively engaging the team so they felt ownership in the evolution of the business.”

Emma’s guide to succession planning

For small business owners who have never put a plan in place, Emma has a practical starting point:

• Start with a real conversation. Is the person you’re considering genuinely passionate – or just expected to step in?
• Map key functions. Document what you do and how you do it. Clarity is critical.
• Set a timeline. Define milestones for gradually handing over responsibility.
• Provide mentorship. Offer stretch projects and guidance from more than just yourself.
• Communicate with the team. Share the vision at the right time, with clarity.
• Let go in phases. Hand over ownership and authority gradually to avoid disruption.

What lies ahead

Looking beyond Virtual HQ, Emma sees massive opportunities for small businesses that are willing to adapt.

“With AI tools, automation, and access to high-quality education and insights now widely available, SMEs can compete with much larger organisations, often with a fraction of the resources,” she says. “The businesses that thrive will be the ones that stay lean, move fast, maintain a strong culture, and build trust through authenticity and adaptability.”

For Emma, succession planning is also about protecting jobs and stability in tough times.

“Succession planning is business continuity. It ensures there’s capability, clarity, and accountability beyond any one individual. When done well, it gives staff confidence that the business has a future – no matter what the market throws at it.”

Virtual HQ’s next chapter

So, what’s next for Virtual HQ under Emma’s leadership?

“We’re investing in technology, our team, and the foundations that will support long-term growth, all with a view to where the flexible workspace industry is heading,” she says. “It’s not always the glamorous side of business, but strong processes and solid operational infrastructure are what enable scale. Admittedly, it’s not every day a physio ends up running a virtual office business – but a fresh perspective can go a long way.”

Building a legacy of her own

When Emma eventually hands over the reins, she hopes the legacy she leaves will be more than just financial.

“That we built something enduring – not just in profit, but in purpose,” she says. “I’d love Virtual HQ to be known as the kind of company Warren Buffett would admire – profitable, purposeful, with sustainable processes, a strong culture, and a team that feels trusted to make decisions.”

Her long-term vision? A business that feels like “an enormous startup. A place where everyone matters, and customers get the same care whether we have 10 or 10,000 of them.”

And her final word of advice for older business owners still putting off succession planning?

“Don’t underestimate the value of your experience, but don’t let it stand in the way of progress. Embracing change means staying open to new technologies, fresh ideas, and the strengths of those who may be younger or bring a different perspective to the table.

“It’s about ensuring what you’ve built can continue to thrive.”

And if you’ve done it right?

“You’ll still be part of the story, just from a different seat.”

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