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Family Business Labs
"The Successor's Paradox"
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The ideal time to pass on the baton to the successors is when they are eligible to succeed and handle the company. This decision must be made by the owners beforehand to avoid any conflict in the future. There are two main conditions for the successors to own the company. Firstly, they must have relevant skills and experience to lead the company and manage the employees. They must have work experience as the employees of their own company or another firm. Secondly, they must be able to manage the operations of the company to contribute to its success.
Transferring a family business to the successors is not simple and should be done carefully else the results will be disastrous. The ideal time of passing the bacon is when the successor is eligible and skilled. The sequence must be prepared far ahead of time. If the current owners do not resolve the issues, it contributes to huge disasters. The successor must be eligible to succeed. This normally involves working somewhere other than the family business for one time or when they have had promotions inside the company so that they can experience skills that are helpful to the company.