how to succession plan

Family Business Succession Planning

3 Minute Read

Succession planning is a process that every organization needs to be thinking about and working on throughout the lifecycle of the business. However, succession planning in a family-owned business has some unique challenges and considerations. More often than not, more than one family member is working in, invested in, or associated with the business. When your business associates are the same people you celebrate special occasions and holidays with, you need to be even more intentional about not damaging relationships in the process.

Read More

Tough Decisions: The Next Generation of Leaders

4 Minute Read

I was recently asked this question by the owner of a family business with four sons working in the firm: “How do I choose which one will run the business?”

Wow! There are so many ways to answer this question. Family business succession can be complicated. My first response was to ask, “Who wants to?” To which the owner did not know the answer. So that is a good place to start; however, there is more running the family business than just who wants to.

When deciding who should be the next-generation CEO and who should play supporting roles, let’s take a look at a few of the tough decisions at play here.

The owner may be asking several questions: Who can run the business? Who wants to? Do we have the talent? Do we expect that they will want to?

Read More

Should the business stay in the family?

3 Minute Read

This is a question that most business founders must face at some point in their lives. Family business planning is the process of selecting and preparing the right person to lead the family firm into the future. The average life of a family-owned business is about 24 years, usually ending when the owner/founder retires or passes away. Reportedly, approximately 30 percent of family-owned businesses survive the succession from the first generation to the second. Moreover, only ten percent to the third generation. Moreover, by 2019, the number of family-owned companies that will transfer from the first generation to the second will be the largest the world has ever seen.

Read More

Who is flying this plane?

3 Minute Read

As you’re boarding your flight, you look to your left and catch a glimpse of the Captain sitting in the cockpit. You wave and nod approvingly, and now you can rest assured that there is a Captain – and he looks competent to get you to your destination safely…phew! Your plane takes off, and now you’ve reached 30,000 feet. All of a sudden, someone comes over the intercom and says, “Do we have any doctors or nurses on board? We have a medical emergency.”

OH NO! The Captain has had a heart attack. Panic sets in. You start to fidget. Your forehead is glistening with sweat. It’s at that moment that it hits you…WHO IS FLYING THIS PLANE??? You’re waiting for the oxygen masks to drop, and you’re ready to tuck your head between your knees and brace for impact. You wish you would have paid attention to all those stupid instructions that the flight attendant went over…Where is the nearest emergency exit? Can I use my seat cushion as a flotation device? You think about every possible terrible scenario as the drama unfolds.

Read More