Your how-to guide to business succession planning
/If we think about the core values of family-run businesses, one of them is usually family itself.
If asked, most people who start a business will say that creating a better future for their family is a huge part of why they do it.
But when it comes to passing that legacy on to the next generation, without the proper planning, things can get messy quickly.
We’re often asked how business owners should go about transferring a lifetime of work to their children, and there are a lot of factors to take into account: business structure, company values, management hierarchy, business planning and forecasting, debt, and stakeholder management to name a few.
But ultimately, the success or failure of an inter-generational business handover lies in the parties’ ability to collaborate effectively to achieve a mutually beneficial outcome.
To aid this process, we conduct a series of strategic meetings separately with the various groups involved:
First with the legacy group, who are the founders of the business, usually the parents of the family.
Then the succession group, who are the ones taking over, usually the children of the founders.
Then we bring the groups together to collaborate, find an exciting new direction, and determine a clear path forward.
Once the succession plan is settled, the rest generally falls into place, with directives, goals, and accountability assigned.
The keys to all this working well are respect between the parties, integrity, patience, and focus on the end goal, which is the successful continuation of a lifetime’s work.
As always, if this is something you’re starting to think about in your own business, don’t hesitate to get in touch.