You have run your business and weathered many successes and challenges. Today, it is the challenges of successions about which we will be speaking. Many business people have put their hopes into the plan that the children of the family will take over the business, both its operations and ownership.
This may not be a realistic nor achievable goal due to many factors:
– the age of your children
– the childrens’ aptitude and interests
– the nature of your business
– the ability to pass on the knowledge to successfully operate your business
What can you do? you can first try to gently introduce the business to your children and allow them to understand how it got from your involvement to where the business is today. This would be the first step in communicating and connecting with your children which is an essential ingredient to the succession process.
Despite these great beginnings, some succession plans to include family members may not succeed. This then means that you have to consider alternatives. These alternative could include:
– management buy out
– sale to a third party
– bolster management capabilities so that the business can function without you.
All are paths which can be successfully achieved, if you business continues to have good operating results. Going back to the original comment, you should open the door to communication with your children to let them know more about your business and the passion and interest that you bring to it everyday.
You will be surprised how your passion in what you do can translate into interest from your children.
Learn, think, apply!