Family business succession planning is not an event – it’s a process that evolves over time. In order to create the most effective plan, you need to recognize it, address it, and implement it as a process. So, how might the succession planning process begin? Below are the two main actions to take:
Set the Tone for the Engagement
Understand the important issues and the goals you want to achieve. Spend some time on the internet researching, reading, and devouring information.
Engage the Appropriate Advisors
Once you set the tone for engagement, the next step in the family business succession planning process is to engage the appropriate advisors. Who do you need to help you? You’re successful at running a business; you’re not a professional in these items and issues as far as family business transition is concerned. It’s important to assess who should be a part of your team. Consider lawyers, accountants, and valuation professionals to help you establish the value of the business.
You may also need individuals who can help with the family dynamics to help you work through some of the emotional issues and some of the emotional baggage that you’re holding onto as you’re facing the transition process. These are just a few of the professionals you might consider as far as who you’re going to use moving forward and ultimately, to accomplish a successful transition.
For more information on the steps involved in developing a succession planning system, watch our video below. Subscribe to our YouTube channel for more videos.