When it comes to succession planning, business owners face a ton of difficult questions. Planning for your succession means making the right decisions for your future, your family’s future and the future success of your business.
According to a recent national survey, 25% of family business shareholders who are entering their senior years have not completed any estate or succession planning other than writing a will.
In another survey, 49% of respondents said they only review succession plans when a change in management requires it. Similarly, 41% do not have leadership contingency plans. Moreover, 42% of non-executive family members are unfamiliar with succession plans.
What does this mean? It means that although succession planning can be a sticky topic for owners or founders, it is critical to the success of an enterprise. By creating a stronger governance and succession strategy, a family-owned business is much more likely to maintain the founder’s long-term vision for generations to come.
So where do you start? In the succession planning process, you must first clearly establish your goals and objectives, as well as your company’s current resources. You must also communicate your vision with your family, business partners and key employees.
Family business is one of Janover’s specializations and we provide expert guidance as to the growth and profitability of your business, even if this requires getting family members to move beyond their differences to focus on the common goals they share. Our qualified advisors can help craft a plan unique to your family’s situation to ensure the successful future for your family business.
Mark Goodman is the partner specializing in Family Businesses. Please feel free to contact Mark by email: email@example.com or phone: 516-542-6300 x261