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When you allow yourself more time to plan for the future of your business, you can begin evaluating family members or employees based on their interest, managerial and entrepreneurial skills.With a good plan in place, you can begin to not only prepare the individual for his or her future role, but you can also help avoid conflict when it's time to hand over the family business to your successor.
It’s no secret that running a family business takes a great amount of time, hard work and commitment.
Often, as an owner you wear many different hats and have to move at a rapid pace to keep up with changes from your competitors as well as shifts in your industry.
But one thing that successful business owners may overlook is creating a plan for the long-term future of their business.
According to Nationwide's recent Small Business Survey, three out of five small business owners don’t have a plan for what to do with their business when they are ready to retire.
Not only can this prevent future generations from fully learning business operations, but it can also impede progress as the business does things the way they’ve always done them.
According to experts, this reluctance to relinquish control at the right time is one of the reasons fewer than one-third of family businesses survive the transition from the first generation to the second, and only about 12% survive from the second generation to the third. Planning for both the success and the succession of your family business allows your business to grow while you develop talent and identify or cultivate strengths among your potential successors.In a family business succession planning involves: …each at the individual, family and business levels.Typically, family business owners consult with a variety of professionals in developing their succession plans — lawyers, accountants, bankers, financial planners, insurance advisors, merger and acquisition consultants and management consultants.Planning to pass on the family business can be tricky, but ultimately will be worthwhile.Conducting thorough research can ensure you make the right decisions.When you have a clear idea of what you want, then it makes sense to broaden the discussion out to include the desires of the rest of your family.Only when the family has developed a committed vision for its future in the business does it make sense to develop a strategic plan for the business to support the family’s goals. The owner’s vision The questions are deceptively simple but the underlying issues are many and complex.Too often, these professionals find it difficult to proceed because their client has yet to make a number of personal and family decisions that will drive the planning process.Make Things Happen has developed a process designed to help family business owners address all of the key personal, family and business issues underlying an effective succession plan.Developing honest and realistic answers can take some doing.A skilled facilitator with a deep understanding of the dynamics of the family business can help you avoid the assumptions and miscommunications that can threaten family harmony and the long-term viability of your business.