Few challenges demand more of a business owner than passing on the family business to the next generation. Succession planning is not simply a question of who shall take over the business; the current business owner/manager must also consider the following:
- At what point do you wish to retire?
- What will you do with your time?
- What measures have you put in place to finance your retirement?
- What involvement if any will you have with the business upon retirement?
The selection of new leadership is an on-going process. It works best when grounded in the company’s best interests for its long term future, its current competitive position and above all consultation with family members as to their goals and aspirations.
When considering the future successor, ask yourself the following questions:
- What skills, qualifications and experience will your successor need to possess in order to carry your business into the future?
- Will your family successor be ‘ready’ when you want to retire or will you need to consider an interim manager, possibly an outsider?
- How will you identify that family successor?
- With whom will you consult during the selection process?
While you may be struggling to let go of the company you’ve spent a lifetime building, your son or daughter may well be wondering if you will ever retire and what kind of future they will have in the business.