subject: Passing Your Family Business On To The Next Generation [print this page] Planning a smooth transition is the key to ensuring your business continues to run as usual. However, if it gets too hard to handle, note that youre not alone. There are expert coaches whove been trained to deal with succession issues. With his or her help you can stop matters from escalating to the point where youll need a lawyer.
Here are a few tips to help you manage the transition. Begin preparing early. The sooner you realize all that has to be done, the better off youll be. By getting a head start, youll have the opportunity to do things such as purchase life insurance. Note that many business owners do so in order to fund the transfer of stocks in the company. If you do it at a young age, the rates wont be as high as they are at age 65.
Second, assess whether the person whos in line to inherit the business has the capability to run it. By having your kids work along side with you throughout the years, youll know whether they truly care for this particular type of endeavor or not. It will also teach them the skills theyll need to one day take over.
Third, dont be afraid to call formal meetings with everyone involved. Talking things out is a way to reach consensus and avoid problems down the road. If there are delicate matters youre not too sure how to handle, bring in a consultant to mediate and advice. This persons experience might prove valuable and useful to resolving money and personality conflicts.
If the business mandates more capital in order to keep up with modern technology or new trends, consider whether its worth keeping it or selling. Make sure the family has a chance to decide whether it has the ability to raise the funds. If not, its important to let them know they are not failures and selling is in everyones best interest.
Hire the services of a reputable moving company and when you hand the keys over to your successor, never look back. Youve been a success at your business and not everyone can say that.
