A successful transition of ownership of a family business requires planning far ahead of time.
As leaders of a family business plan for the future, owners (and leaders) of the business need to have an understanding of the legacy that will potentially take charge.
Identifying the potential family members who can take charge of the business and continue its legacy is critical.
Developing a business plan for the future of the business is critical – and it is important that potential successors take part in building the plan.
Owners need to have an understanding of the experience and skills that children have in order to take over.
And if they don’t have the skill set, where do they get it?
Owners also need to begin the process of identifying and developing potential successors for key leadership roles.
The owner needs to understand how the family members are involved in the day-to-day operations of the business so they can identify and develop their strengths.
Other answers to questions on developing the succession plan include knowing how the plans impact family relationships.
Are the children willing to take on the roles and responsibilities of ownership?
And does your plan include providing the support they need to succeed?
Key points in planning include documenting the processes that ensure a successful business, maximizing communication among family members and ensuring that the role of the new leadership team maintains the culture of the family relationships.
Cathy Hagan is a business consultant with the Small Business Development Center at the University of North Florida.