Succession planning is vital for every family business owner. For many, the family business is a legacy vessel, and in other cases, the family business only lasts one generation and will need to be successfully sold when you exit. Regardless of which camp you are in, succession planning is critical.
- Who will take the reins?
- Who can I trust?
- What is tied to the “reward”?
- Who is tied to it?
- Will my children be capable and or willing?
- What do you do if your child is not a realistic option?
Congratulations to those with a child as a potential successor. Ultimately, if all works as planned, the benefits are immense. You have a trusted successor leading your business into the next generation and potentially leading into the third generation.
But what if you don’t have a child, your child is pursuing other career options, or they were not a fit for the business? Some first-generation multi-unit franchisee owners who started their business from bootstraps perhaps would struggle with the concept of “letting go,” especially to a non-family member. However, there are solutions to this. You can create a unique opportunity for a key manager to rise to the opportunity and serve as a contingent successor, an equitable key manager with or without a buyout, or even have a group of your top performers collectively participate in an ESOP.
With all the options on the table, you may be able to achieve succession beyond your lifetime of ownership. With or without direct family members, succession planning is not a project but a long-term commitment to perpetuating your legacy through the next generation of owners and managers.
Click the following link to read the complete article on the Franchising.com website: Preparing the Family Business for Its Next Move.
Read the article and then reach out to us to get some insights into your own situation. A few moments with us will provide you insight and clarity for your next steps forward. Contact Us