You’ve put your heart and soul into your business. You’ve built it up from that very first client to the success it is today. But what happens when you are no longer at the helm? What becomes of your business that has provided for you and your family for so many years? How can you ensure that it will continue to provide for your family, your children, your grandchildren, and for generations to come?
Chances are, no other challenge has as much potential to exacerbate the stresses – or highlight the advantages – of operating a family business as succession planning. But the health and longevity of a family business requires careful succession planning – and communication of the results of that planning to the right stakeholders at the right time.
Much of the stress of creating a succession plan centers around business – including administration and finance, operations and customer fulfillment, and sales and marketing – and legal issues. But a large portion of the stress is emotional, stemming from each family’s unique dynamics and possible inter-family disputes.
Your succession plan will have a far greater impact than you may imagine. The decisions and choices you make will affect the future of your business, your customers, your employees, and – most importantly – you and your family. But with a solid, well-developed succession plan, the effects can translate into success for everyone.
Creating a succession plan is not a one-time event. Planning should begin early as the success of the plan could require education, recruitment, and mentoring to ensure that the next generation has the tools and support to carry on your legacy.
Your plan also needs to be re-evaluated annually or as changes in the company dictate. Various Internal events – such as the visions, goals, and objectives of key family members – and external events – such as changes in your industry and the economy – may have an impact on your plan. To ensure that your succession plan stays in alignment with these changes, regular re-evaluation is imperative.
The bottom line is that succession planning requires unbiased, sound preparation by a team of experienced financial professionals. At Tax Saving Professionals, our team of financial professionals can develop a succession plan customized to your unique business needs, and even more unique family dynamics, to create a legacy for generations to come.