If you are the owner and manager of your business it is imperative to plan for a time when you are no longer there. However, with over 50% of family business leaders believing their successor is not ready for the role, it’s vital to have a formalised succession plan in place.
How would you answer these questions right now?
In short, are you creating a legacy or a nightmare for your loved ones?
Start with the simple things
If you haven’t planned for your succession, start thinking now about personal things such as:
Then what about your business? A succession plan should start with the simple things, which are often forgotten. Such as:
The bigger decisions
Those are just the basics but what about decisions that require a higher level of input?
It is common for family businesses to have an implied succession plan based on family hierarchy; however a formal intergenerational succession plan not only documents who will take control of your business, but how others in your business and family will be affected. These decisions will be the make or break of your legacy. Are these decisions documented and where is this information kept?
Choosing a successor from within the family group can prove difficult with nearly half of family business owners citing lack of motivation and ability among eligible family members as an impediment to successful leadership succession.
The word “succession” comes from the word “succeed”, but it does not necessarily follow its root. To succeed in your succession, make certain you have planned carefully and seek the guidance of a professional adviser to help you along the way.
Want to know more? Download our FREE eBook which contains practical tips on how to develop your exit plan.