Family businesses are meant to be passed on from one generation to another. You want the business to expand but at the same time, you want it to remain in the hands of family members. You want control to stay within the group.
The problem is how to move the business from one family member to another. You can’t expect everyone in the family to be interested in managing the business. It is also possible that at some point, the business is on the brink of bankruptcy. No one would want to inherit this kind of problem. As such, you need to follow the right tips to successfully transfer the business and keep it alive.
Have a clear business plan
You must know what exactly the plan is moving forward. Do you plan to scale the business down? Are you planning to expand? What have you done in the past to make the business a huge success? You should answer these questions and show them to the person who will most likely succeed in running the business. This plan is not rigid, but it will serve as a guide.
Find someone who is committed
The problem with some business owners is that they want the next person in the family to manage it. Even if this person is not committed in doing the job, they will force the person to change mind and run the business for as long as it remains in the family. This does not result to anything positive. You have to make sure that you pass it to someone who is really committed in doing the job. If this means placing the top position to someone outside the family, you must do it. The goal is for the business to live on.
Create a board
There must be a good board of executives who will provide quality advice to the team. These people are lawyers, advisers and other experts. They can see the business from the outside. They are also objective in giving their advice. It is more useful for you than having only relatives providing the same advice.
Don’t just give it your child
Even if your child has shown interest in managing the business, your child must prove that he is worth it. He must have worked with the company too. He should have also shown interest in taking on leadership roles. In doing so, you know that you are not giving this company as a gift but more of a reward for hard work.
Resolve family conflicts
Before moving forward with the plan, make sure everything at home is fine. This is the danger with family businesses. When the family has a problem, the business is affected. Therefore, if you intend on letting a family member hold on to the business, you have to be in good terms. Otherwise, it will be major conflicts all around.
Keeping the business alive is never easy. You will face a lot of challenges along the way. You will go through them but remain steadfast because it is for family.
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