2017 Quarter 3 – MONEY MATTERS
Passing on the family business
Transitioning a family business to the next generation can be an incredibly confronting process. Stepping back from your business is a big move and can be quite difficult if there isn’t a solid plan in place. Succession planning helps to ease the process. A strong succession plan reduces the risk of interfamily disputes and can ensure the strength of your business continues well into the future. Consider the following when preparing your business’ succession:
Well-defined plan
A formal succession plan can help guide your business through a smooth transfer of control. Involve family members in business succession planning discussions
and foster a collective family vision early on. It is important to be realistic when choosing successors; don’t expect family members to take over if they have no interest in the business. Think strategically about the skills, knowledge and experience required for the future success of the business and co-ordinate family members to roles appropriately.