The point of a family business is for it to be handed down through the generations, but over 50% of them fail to survive long enough for that. This is why planning properly for succession is crucial, and these are three points to consider.
A shared vision
Handing over a family business is something that should happen in stages, rather than suddenly, with children integrated into it long before they take charge. This gives you time to find out who is best at what and make sure they buy into the vision of the firm. It also lets you address any changes to the structure of the business, such as who makes up its board.
Get outside help
There will not always be someone in the family with the skills for every role, so you will sometimes need to look outside of it. For instance, you can bring in a family business accountant from Goole or anywhere your firm is based. They will bring experience of working with this kind of company and can help with everything from tax matters to shareholder structure.
Train your family
Ideally, you want the next generation to get both education and hands-on experience before they take over the running of the business. Sometimes, the best experience can be gained if they go and work for another firm for a period, as they will not any receive special treatment there.
At Adaptive Accountancy, we offer top-quality family business advice. Call now for details.