Have you been putting of succession planning?
One of the most important stages in business for any owner manager is planning their exit or succession to create maximum value in their business and wealth in their retirement. For family businesses this is a tough challenge to balance the needs of their family and their business.
A good succession plan can ensure that the owner has the funds for retirement and that the business they have built continues to thrive in the hands of the next generation or sold at a good price. Although there are clear advantages for putting this plan into place, 47% of family businesses have NOT drafted a succession plan. Common reasons for owners putting this off include resistance by the owner to let go of the reins, fear of retirement, too busy with day to day issues or inability to find or choose an effective successor.
For many family businesses, family is the primary emphasis of succession planning making it very emotional and complicated. However ignoring or not devoting time to planning can make it worse for your family and the business if personal circumstances such as illness or age take the decision out of your hands. A forced, ill informed or panic decision could mean the business is transferred into reluctant, unprepared, unqualified hands or sold at an unsatisfactory price.
All of the above could result in the failure of the business. High emotions are normal for family succession but with careful planning the business could build on its existing success for another generation.
If you have been putting off succession planning, click on the below link to get you started.