Many small businesses are family owned businesses. Suppose you started your business years ago and you have built a profitable business for you and your family.Your children are now working in the business. What will happen when you exit?Many parents do not have a plan in place for when they exit the business.
There are number of steps that should be taken to prepare.These include legal, financial, and preparing the next generation to take over if they want to work in the business. In the first two areas you should work with an attorney and financial planner who understands tax laws.This is particularly important if you have other children who will not be working in the business.
Now with regard to succession and operating your business you need to develop a strategic business plan.The plan should include organizational vision, values, and mission.It should include your critical goal categories and a plan of action to achieve your goals.The business plan should include a budget, marketing plan, and sales plan at minimum.
Your business plan should be clear cut and convincing to an outside party.This could include banks and other strategic partners.
You also need to develop your children for leadership roles.Don’t that it will happen or they will work it out themselves when the time comes.Institute a leadership development process.Such process will help you and them to discover their strengths and weaknesses.It will also help in mutual discovery of who fits into what role.Remember, you need one president and CEO.A pre conceived notion of who that would be may lead to disappointment or failure if a leadership process is not developed beforehand.
Many people spend more time planning a two week vacation than they do the future of their business.You spent your career building your business.Make sure that it carries on as you intended.
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