Managing the Future of Your Business
Like many things, when it comes to family education you’ll be most successful if you begin with the end in mind.
You own a business. You’ve worked hard to get it to where it is today. One day — whether in one year, 10 years, when you pass away, or at some other time — someone else will run this business. If you’d like to decide in advance who that “someone else” will be, you need a succession plan.
If you don’t have such a plan, you’re not alone. Many business owners don’t adequately plan their succession, if at all. There are many reasons for this complacency — from their reluctance to “let go,” to fear of creating family disharmony.
Ironically, the best time to create a succession plan is when you’re too busy managing your growing business. Planning a business exit can be emotional — there are often personal and family dynamics that may conflict with a business’s wellbeing. For this and other practical reasons, planning an exit requires an owner to think strategically, preferably with a professional’s help.
The purpose of this type of planning is to create a clear exit path that is simple yet effective in meeting personal and business goals while preserving family harmony during what is often an emotional and conflict triggering process.
…a very rich person should leave his kids enough to do anything but not enough to do nothing…
— Warren Buffet
There are certain steps a family can implement to achieve open and trustful communications:
Always keep the door open to unpopular opinions.
Bring an outside facilitator to initiate and lead the process. This leads to more efficient and objective discussions.
Create a commonly agreed upon code of conduct for family meetings that will help keep discussions on lower emotional grounds.
Family meetings are more effective when properly planned with agendas tailored to the family’s circumstances. The three common agendas that concern family succession are summarized as follows:
How do I start? Call us today.