Someday, Kids, This Business Will Be Yours.
What an exciting thought! Imagining that one or more of your children may want to carry on with owning and managing the family business! Your legacy can live on!
Taking the time for planning and preparation will probably have a positive influence on making your generational transition a success. Over many years of advising business owners, I've dealt with generational topics and planning details that other owners have implemented effectively. For this purpose, I've listed some of the frequently discussed transition areas that should merit your attention, before you begin your transition plan.
1. What's motivating you to consider passing the baton? What will you do when the transition is complete, retire? If the business is prospering, do you plan on selling or gifting stock shares? What payment terms can they afford? Can your son or daughter work well with you? Can you let go?
2. Do your young adult children have a real interest in the business? To what extent have you tried to convince them that it's a good business? What are their hobbies? Have you discovered the main personality differences between you and your kids? Rate their sense of responsibility, accountability and motivation characteristics from 1 to 10. Now rate yours.
3. What's the near term and long term forecast for your industry? Is it a growth industry? Can your business benefit from the global economy? If you have managed to be nearly debt free, can the business generate the revenue or bank financing to help pay you for a business sale? What's your business worth?
4. What if your grown children have no interest in your business at all? Get another relative interested? If you have a partner with interested adult children and your children are not interested, then what? Planning on having your children benefit, even if they're not active in the business?
The possibilities and combinations of solutions for planning a generational change are plentiful. The key is to get answers to your questions from experienced resources that have dealt with effective solutions on behalf of other business owners. If you would like more information, at no obligation, please call me personally at 847. 382.8886. Send an email to paul@heinze.com for more information and view our web site www.heinze.com.
Planning effectively will help make your dream a reality.