Planning for the Family Business Transition: "What's Next"
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As a buisness owner, you understand that ultimately you may face the challenge that your role as a leader at your company will one day end. This can be difficult, especially if your business is family owned and operated. Or, you may have already experienced this kind of transition through an illness, death, sale, or the business being passed down through generations. If you are planning to pass your business to family, it is important to discuss it with them openly and honestly. Planning for the next generation can be challenging, but the cost of not facing this question may be substantial, both financially and personally. Investing the time now to ensure a successful transition can be impactful for the new owner, and it will show your employees that there is a bright future for the next generation of the business.
Understand the Barriers
Some of the common barriers that can contribute to a lack of succession planning may include:
- Not having enough time to properly plan.
- Fear of giving up control of the company.
- Avoiding the issue due to its complexity.
- Holding on to fear of the unknown.
- Lacking clarity as to what the succession plan should look like.
Acknowledging these possible barriers can help move the business toward starting the important process of business succession planning.
Make Your Transition a Success
Ask yourself what you want the business to look like once you are no longer the leader. The right option for your business – whether it's a sale, a gift, or a combination of the two – will depend on a variety of considerations and your individual circumstances. Success involves being proactive and preparing for the next generation of leaders for your company. Communicating your wishes, determining a plan, and implementing those wishes will provide you with the answer to the question, "what's next"?
A qualified attorney can help you sort through your options and can help design a business succession plan that will be in sync with what you want. Talk to your local marketing representative for a referral to a member of Federated's network of independent attorneys.
