Family members commonly play a controlling role in both successions of ownership and management. In order for the succession process to be successful, it is crucial to integrate and manage the family component effectively
Here are some of the attributes of a successful successor:
- They have a thorough understanding of their business
They are aware of themselves
- They want to be in charge
They meet the strategic needs of the business with their skills and abilities
The most important aspect of a family business is succession planning, but most families fail to implement it successfully.
For the same reason, I want to make sure that the following key issues are considered when planning succession in my family business:
1. Develop a business plan and a family plan
Family relationships and business relationships must be clearly defined, which can evolve with time along with clearly defined values.
2. Educate and prepare the next generation:
The incoming generation has the opportunity to put their own stamp on the business, and they can offer advice and guidance as needed.
3. Bring in outside talent:
Both outside advisors and board members often bring a detachment and clarity to decision-making that is inherently difficult for those family members who are often too emotionally attached.