Whats involved in succession planning for family businesses?
Transferring the family business requires the family to make a determined effort to do the following: • Create a business strategic plan. • Create a family strategic plan. • Prepare an Estate Plan. • Prepare a Succession Plan, including arranging for successor training and setting a retirement date. These are the four plans that make up the transition process. By implementing them, you will virtually ensure the successful transfer of your business within the family hierarchy. Q: What is a business strategic plan? A: A strategic plan for the business will allow each generation an opportunity to chart a course for the firm. Setting business goals as a family will ensure that everyone has a clear picture of the company’s future. This plan is long term in nature and focuses on where you want the business to be at some future date. Q: What is a family strategic plan? A: The family strategic plan is needed to maintain a healthy, viable business. It establishes policies for the family’s role
