Who’s Up Next?? Succession Planning for your Family Business
In my work with family-owned and operated businesses, succession is one of the most topical questions.
To be frank, previous generations typically had their kids earlier.
By the time sons and daughters were in their 20’s, there was still a good amount of runway for them to join and learn the business from their parents.
Today?
Not so much.
Parents who have children in their mid-30’s, start a business, and then hope to pass along the operation of their business to the next generation, to continue to build wealth and the legacy of the company, are already well into their 50’s before the kids are ready to even enter the business.
- Let alone learn it.
- And earn the aptitude and credibility to run it.
- A path that can take 10 to 15 years depending on the scope and complexity of the business.
And this path begins even later depending on the education the kids choose and whether they work outside the family business first.
The founding generation can feel “stuck”.
“Do I still want to be mentoring my sons and daughters in my late 60’s and 70’s? This isn’t what I envisioned.”
And if they didn’t have their kids until age 40 or later, they could be looking at shepherding the business transition to the next generation well into their 70’s and beyond.
These are some of the dilemmas we discuss.
- Is there a need for interim management outside the family?
- Do I hold onto the business long enough to bridge to my children’s generation?
- Is this fair to me and my spouse?
- How do I achieve a sense of reaching the pinnacle of success?
- Will this next generation succession even want to continue the legacy??
If you are a founder or 2nd generation business owner seeking a sounding board and clarity on these questions, let’s connect.
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