Hello and Happy Friday:
One down and one to go. Daniel headed back to Arizona on Tuesday and started class once again yesterday. Cameron is likely headed off to Florida for a gap year, to work on his cousin’s political campaign as an intern. Soon enough we will be empty-nesters in the real sense. While I know I’ll miss my children intensely, I relish the opportunity for growth and expanding personally and professionally. Here’s a photo of our family vacation last weekend when we were all together
Transitioning a family business can be harder than normal because of the interpersonal relations between owners/employees. Creating a plan to transition out of the business can be a step-by-step process, requiring a fair amount of time and consideration. We can help start the process with you.
Until next time,
Steps You Can Take Now to Create a Succession Plan
Many small businesses are family owned. While family owned businesses enjoy the benefit of familial solidarity, their strength is often threatened when it’s time for leadership to be passed down. Succession plans help ensure the transition from owner to owner is an easy one, but many small and family-owned businesses do not have such a plan in place.
You may think that succession planning doesn’t reap immediate benefits, and as a result overlook it as a critical component of your current business success. However, what we’ve repeatedly found is that succession planning now strengthens your business, supports it to grow now and allows for the longevity and legacy you desire.
And, the best part of succession planning is that it can allow you to chart the vision for your future, as the business owner, so that you can begin to experience the freedom you may have desired when you first started your business.
Employees brought in from outside the company (and the family) might become disappointed with the opportunities—or lack thereof—for growth. A family-owned business that cannot attract talent to take the reins and keep the company viable throughout a leadership transition is risking a lot and can keep your company from the growth you desire.
Small-business owners need to clarify each employee’s role, including its limitations. Being upfront about the room for growth from the beginning can help employees make the most of their positions and allow them also to be clear about what they want out of the role and how they want their talents to be used. Small business owners should be flexible when attracting top talent. If they are not able to provide them room for growth, they should be sure the position is worthwhile in other ways if advancement is not a possibility.
When a business owner starts from the ground up and sacrifices years of time and money to grow his or her business, it can be hard to let it go. Some business leaders are reluctant to retire because they have a psychological investment in the company. This can create significant barriers to succession planning before it’s too late.
Begin by creating a phased transition plan. A phased transition plan can help you to retain some involvement while incoming leaders learn the ropes. This works to break down the barriers in passing the baton. Easing out of and into new roles creates a more successful transition as the incoming leader takes time to get to know and understand how the current leader sees the future of the company.
If you are ready to create a succession plan, start by sitting down with us. As your Creative Business Lawyer®, we can guide you in making the difficult decisions you face every day as a leader in business, including when and how to hand off leadership roles. We can look out for your business’s future, so you have time and energy to focus on growth and expansion.