Seven Keys to Successful Family Business Succession Planning
Did you know that:
Just over 30% of all family-owned businesses survive into the 2nd generation
12% will still be viable into the 3rd generation
With only 3% operating at the 4th generation and beyond
So are you beating the odds?
And, what can you do to make sure that you continue to build wealth and security for generations to come?
Here are six keys to successful family business succession planning:
- Document your plan for the business and how you plan to transfer leadership and ownership to the next generation. And do it NOW. As successful succession plan can easily take five years to implement. And trying to successfully implement one in crisis mode is virtually impossible.
- Get buy-in and acceptance from all family members in the business.
- Set short-term milestones for the execution of the plan.
- Review your succession plan with your family financial planner, CPA and trust and estate attorney to ensure that we take advantage of all opportunities to protect the wealth that you’ve built.
- Establish clearly defined roles and responsibilities for everyone in your company; but, especially each member of your family. In addition, each one of these roles must have specific and measureable short and long term goals and objectives that are evaluated quarterly. These responsibilities and the related metrics must be agreed upon at the beginning of each year with the individual so that success and failure is objectively measured, rewarded and addressed.
- Invest in the personal and professional development of each member of the family.
- Conduct behavioral and skill assessments for all family members; and ensure that each member is coached and mentored to capitalize on their strengths and work to minimize their weaknesses. Utilize these assessments to plan out the future professional growth of the family member and his/her future responsibilities in the business.
Do you feel overwhelmed on how to take the next step in your family business succession planning?
We can help – contact one of our business coaches today 203.210.7003 and take the next step toward building wealth and security for generations to come.