Success is the integral part of the word succession. Family Business owners are getting older and succession planning will be critical over the next ten years to ensure the survival of many family businesses in many communities across our nation. Like many other things, this is a process, and it takes a tremendous investment of money, energy and time. There are generally three primary strategies involved in any succession plan.
Strategy 1: Develop a Clear Vision for Your Future
Every successful succession plan begins with a clear, powerful that contains some of these elements:
- The legacy your business continues to create after you are gone
- Your family relationships and how you will spend time with your spouse, children and grandchildren
- Your contribution to your community
- Your personal growth, goals, and activities
- Your spiritual life
- Your overall lifestyle
Another important thing you have to consider is how you will replace the meaning and purpose your business fulfilled in your life. In our experience, the family business owners who experience the greatest enjoyment after their retirement are those with a strong sense of purpose that has very little to do with their business.
Strategy 2: Create a Contingency Plan
Succession planning can start the very first day you open your doors for business, or it can start on any day thereafter. (Remember rule #2.) If you lack a sense of urgency for succession planning right now, this question may give you a jolt and help get you started.
What would happen if you were forced to leave your business tomorrow?
Having an answer to this question means you have a contingency plan in place that bridges the gap between planned events and unplanned events such as death, disability, catastrophe, divorce, family illness, and others.
Strategy 3: Develop and Implement a Succession Plan
5 Key planning elements of a succession plan:
- Identify your successor
- Develop your successor
- Address financing options and considerations
- Prepare the business
- Prepare yourself
If you are interested in learning more about creating a succession plan, please fill out the attached form and someone will get back to you.