“Since every family’s membership business interest is unique, so every succession plan must be different as well. There are no fixed solutions, no boilerplate succession plans, no succession plan forms that a family can clone. A family’s failure to consider its uniqueness in developing its own succession plan will almost surely spell failure. Indeed, some families may even conclude that they are unable to develop a traditional succession plan, since they have no qualified successor. The succession plan for these families may be to hire professional managers to run the business upon the retirement or demise of a leader or, in some cases, to sell the family business. While this succession plan may be fraught with hard feelings and regret, a decision to pass on the leadership reins of a family business to an unqualified family member risks financial disaster or ruin for the entire family.
While there is no such thing as a generic succession plan, there are, nevertheless, experience and judgement that suggest certain features of the succession planning process are important for most family businesses. “
“The Successful Family Business” – Scott E. Friedman
As Scott Friedman eloquently states, in order to position your company for the most possible success, one needs to create a succession plan that is unique to your own company. While this can be a challenging process, you do not need to do this all on your own; this should be a process that involves all the family members. In addition to the support of your entire family on this endeavor, there are trained professionals who will help tailor your plan to address every part of your family business.
Make sure to attend our November workshop on “Family Business Governance” by Peter Johnson, on November 17th, and learn how to create a custom succession plan and to find the resources to aid you in this process.
To save you and your family members a seat at our upcoming workshop, RSVP here: http://business.fullerton.edu/Center/FamilyBusiness/#WorkshopRegistration