Every company owner’s dream is that the family business will stay alive well after they’ve retired and gone; but it’s easier said than done to keep the business going, especially if you don’t have a proper plan in place. Regardless of your age, the only way to ensure that your business survives your exit is to create a succession plan. There’s no better time than now to learn how you can keep your family business alive with motivation and careful planning.
Focus on Next-Generation Leadership
Did you know that less than a third of family-owned businesses stay alive through the second generation? If you plan to pass off your business to your son, daughter, niece, or nephew, you need to start engaging them now. Successful family-run organizations immerse their children in the business at an early age. From working in the field to bookkeeping to sitting in on decision-making meetings, getting your family involved and teaching them every aspect of the business will give them the leadership skills and pride needed to carry your business into future generations.
Foster Healthy Family Dynamics
If your family barely sees each other or is riddled with conflict, the odds of your children wanting to assume your business will be slight. To keep your family business alive, you need to be motivated to strengthen the family bond and the interconnections. This includes communicating regularly, participating in their lives, and finding shared values among you and your children. The greater the bond, the more likely your children will feel passionate about being part of the family business.
Start Succession Planning Early
If you want to see your legacy carried on, you need to nail down the particulars of your succession plan early on. This way you’ll have plenty of time to prepare and groom your successors to take over the business. If you were to pass away before creating a detailed plan, your family would be left trying to figure out what to do with the business and figuring out who would run it. This can lead to conflict, confusion, and costly tax burdens, which is something no parent wants to leave behind. Instead, you should meet with a professional advisor who can start putting your succession plan into place earlier rather than later.
Involve Your Family in Planning
Having a succession plan is one thing, but including your family in the process is another. For instance, let’s say you think your university educated, ambitious daughter is the perfect candidate to take over your business, so you put her into your succession plan. But what happens when you find out years later that she has other plans for her future which doesn’t include following in your footsteps. Meanwhile, your youngest son is motivated to learn and grow your business starting now. If you don’t talk to your children in detail about their goals, ambitions, and future plans, you may choose the wrong successor. Communication will allow you to find out who is willing to continue your legacy after your gone so you can groom them well ahead of time.
If you want to keep your family business alive, you need the motivation to get your family ready to take on your legacy and get your succession plan in order. When you’re ready to start planning today to create the future you dream of tomorrow, contact our team at The Beacon Group of Assante Financial Management Ltd. We can help you to make smart choices to ensure a successful sale or transfer of your business from one generation to the next.
