Family Business - Succession Planning Status Check
Most family businesses are not succession ready – and the majority of family businesses do not survive past the second or third generation.
Long-term succession planning is a common factor among successful, multi-generational family businesses.
These ten questions will help you think about your succession readiness.
- Who are the best candidates to be the next owners of your business - family owners, your employees or a third party? What are the requirements of ownership – in terms of commitment and competencies?
- Do any of your family members have the right skills, experience and background – and the passion -- to own and/or work in the business to ensure its future success?
- Have you discussed succession planning with your family members and key employees? Do these key people know that there are plans to keep the company going? Do you have a means to keep your talented staff members?
- What are your personal dreams, goals and financial plans after you exit the business?
- Do you have an advisory board or active board of directors to assist you in the succession process and help guide the future for your company?
- Do you have family meetings to discuss important business issues and to maintain personal relationships?
- Do you have a conflict management process, the right tools and support?
- Do you know what kind of CEO your company needs to lead it in the current business environment?
- Do you have an up-to-date strategic plan that is guiding the growth and development of your business?
- Do you have a process in place to manage difficult family conversations or to deal with conflict among family members?
Remember, succession planning is a journey that can take several years to complete successfully. Board Dynamics will work with your existing professional advisors to build a succession plan that will let you determine the future and ensure the success of the business you worked so hard to build.