In family business literature the founder-owner-manager is viewed as the main influence in the family business and the leader’s final act is to leave the business.
Succession planning is the ultimate management challenge.
A family business seeks professional advice for a ‘business’ issue or problem. The solution suggested makes sense and a plan is agreed. The plan, however, is not implemented. Why?
Whether or not it is intended that the business continue as a family business, firms that plan are more likely to achieve continuing growth, profitability and family leadership.
In his insightful book ‘Succeeding Generations’, Ivan Lansberg refers to a number of key lessons in family business succession which have been summarised in this article.
In his insightful book Keeping the Family Business Healthy¹ to which readers are referred, John Ward provides some valuable advice to family business owners contemplating the issue of succession.
Awareness and acceptance are ONE of the necessary preconditions to successful succession planning in the family owned business.
Where will your business be in 5 to 10 years, or such other time as you decide to retire?
Accountants are well positioned to provide succession planning advice.
Intergenerational business transfer is often poorly managed.
Most family enterprises do not start out as family businesses. Family businesses are usually the outcome of entrepreneurial individuals who pursue visions to start a business of their own.
Family business owners often recount a similar tale of a sudden realisation of having to figure out which “person” their offspring was everytime they walked into their office - son/daughter, employee, or tenacious successor.
Family businesses possess a number of inherent competitive advantages. However, like other businesses, they face common challenges.
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