Believe it or not, you won’t be at the helm of your business forever.
What happens if and when you decide to hand over the reins will depend on your family business succession plan…
…if you have one!
A succession plan is your exit strategy for when you sell, close or transfer ownership of your business. It’s a vital document for your family business – where relationships are at stake.
Changes to leadership or ownership are disruptions to the business. If handled poorly, such changes could devalue the business, create operational instability or incite family conflict.
Only 30 percent of family businesses survive into the second generation, 12 percent survive into the third, and only about three percent operate into the fourth generation and beyond.
A well-executed family business succession plan is an enduring document that protects the assets and owners of your business.
It also leaves a blueprint for how the business should be run.
More importantly, it lets you communicate your future actions to the family before they happen.
This will create a smoother transition for you and preserve harmony within the family.
Planning ahead also takes into consideration sudden unexpected events that would otherwise throw the business into disarray.
If you haven’t started your family business succession planning yet, we can help you.
Our approach is one of inclusion; we walk every member of the family through the succession planning process.
Family Business Central in partnership with Whanganui and Partners ran this fantastic webinar for farming families on how to start the conversations around succession and what needs to be in those conversations. The Webinar identified practical actions the two generations can take to move through the succession process. The feedback was fantastic and we’d love to hear your thoughts.