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Family Business Succession Planning

3
Jun

Family Business Succession Planning

Monday, June 3, 2019

While we all look forward to retirement, as a general rule very few of us think about succession or exit planning.

Inevitably, one day you'll leave your business and whether you decide to sell up, retire or have to get out of business due to health reasons, it's important that you plan ahead.

If you’re involved in a family business the complexities of today’s environment means it is becoming increasing difficult for business owners to engage with the planning process.

The complexities of blended families have made generational business succession planning much more complicated, and if not addressed correctly can result in businesses and families being unnecessarily bound in conflict.

With the baby-boomer generation getting ready to hand over the keys to millions of Australian family businesses it’s important to get it right.

Misunderstandings between family members and ‘expectations’ are a big part of the problem

In short, succession planning involves:

* Strategic planning

* Financial planning

* Estate planning and

* Human resources planning

. . . each the individual, family and business level.

Handing a family business to the next generation is a major process and can be one of the most challenging experiences you’ll face, especially if you’ve built a family business from scratch.

 A good succession plan can be the first step in maintaining the strength of an enterprise and the family’s prosperity for generations to come.

As a starting point remember;

* Start the conversation

* Know what the business needs

* Protect your brand

* Retain legacy knowledge

* Don't let it get personal

* Document everything

 

Posted on:

Monday, June 3, 2019

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Business Development

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