How to Successfully Move a Family Business to the Next Generation
Handing Over the Family Business
If you have a family business, at some point you may look into handing it over to the next generation. Having an established plan on how to do this not only helps the family know where they stand, but for the employees, clients, and partners who help the business thrive. Although succession planning can seem daunting for privately-held, family-run businesses, it doesn’t have to be. To help, we’ve rounded up a few essential tips on how to move the family business to the next generation.
Focus on hard work
The top position shouldn’t just be handed to the new generation; it should be earned. Clients and partners should feel comfortable working with the new generation because they are the right person for the job. Instill a good work ethic in the new generation so that you can be sure your business is left in good hands.
Tap into their strengths
The new generation brings in new skills that can strengthen the company and keep current with a changing customer base. Customers are becoming more data-driven, and the new generation may be more skilled at analytics and the digitalization of marketing.
Anticipate the challenges
Business is never a smooth road. Having built up your business over many years, you may know what sort of challenges to expect. It’s important to recognize ongoing challenges and teach the new generation how to spot and handle hurdles. With a changing market, your new leaders may have to be proactive about anticipating challenges.
Keep finances neutral
A family business that spans generations has to take into account a family that is much broader than just those directly involved in the day-to-day operations. This can be particularly difficult when talking about finances. A good idea is to work with a third-party mediator to handle the financial details of a generational change.
By planning in advance, a family business can move successfully to the second and third generations. To find the right business insurance policy to meet your needs, contact the experts at Little & Sons Insurance Services. Serving Banning and the surrounding cities in California, we are ready to assist you with all your insurance needs.