You’ve owned and run your company for several years now, but the reality is that you’re getting older. You may not intend to go anywhere yet, but there is no harm in being prepared and implementing a business succession plan.
You have several options for this, with one being to pass the business on to your family members. What steps can you take to ensure that they are ready for this?
Make sure it is a choice
Your family members will likely want to help you no matter what. They may see taking over the business as a duty rather than a choice. Nonetheless, for long-term success, it is important that running the business is really something that your family member wants to do.
You can establish whether or not this is the case by having discussions with them about your plans. Remember, the responsibility of running the company after you have gone doesn’t need to lie with one person. Multiple family members may be keen to get involved.
Gathering experience
In an ideal world, your child will have been around the business each day for several years. They may even have been by your side the whole time while you were leading business negotiations.
If they do not have this experience, then you may want to consider different methods of getting them prepared. One potential option is to have them shadow an experienced member of staff. This way, they can transition into a more permanent management role gradually until they are ready to take over.
If you have a business, then it’s best to protect it if something happens to you. Passing the company on to your family is just one of many options. Seeking legal guidance can help you find out more and make concrete plans.