Successful Business Transition
This 2013 article in Forbes states that fewer than 1/3 of family businesses successfully transition from the first generation to the second, and 50% more fail when transitioning from the 2nd to the 3rd generation.
Unfortunately, this fact is due to a lack of planning for the most part. A small business is part of the family, and it is difficult to not treat it as another child. There are many fears attached to letting a business go and transitioning out when it has been a significant component of your life. Some of the typical fears are:
1. What if my business folds?
2. What will I do after I am out?
3. What if my children can't keep it up or don't want it?
4. What will happen to the families that have worked hard alongside me?
5. How can I really get out when I am so integral to the business?
These are great questions, and they need to be answered by putting together a comprehensive plan around strategy and exit. The business must be prepared through taking the owner's heart and soul and building a foundation that captures these key entities. Finally, the right people and processes must be in place to ensure the business thrives, not just survives.
Interested in finding out more, contact us for a no obligation discussion about your business and your future.