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Keeping it in the family

July 22, 2010 - Tags: Managing

Istock 000002700759xsmallWhat happens to your family business when you are ready to move on to something else or retire?

Business succession planning allows you to prepare for the transition between you and the future owner of your business. With family businesses, succession planning can sometimes be complicated because of the relationships involved. Not everyone is comfortable talking about issues such as aging and financial affairs with family members, and not all potential successors are ready or willing to take on the responsibilities involved.

Succession planning should be done well in advance - five or ten years - of the transition to the next owner. Involve your family in these discussions from the beginning, so that everyone has a say. Be sure that the decisions you make will be good for the business, not just for the people involved.

Assess the qualifications of your potential successors as you would with any group of candidates. Are they up for the challenge? Do they even want to take over? Remember that management and ownership are not the same thing. You may decide, for instance, to transfer management of your business to one person, but have several relatives share ownership, even if they are not involved in the day-to-day business dealings.

Take the time to work with your successor, so that the transition can be as smooth as possible. You can also use professionals to help you put together a successful exit strategy.

Learn more about the resources available to you and other options for succession on our section Succession planning.

Comments

Thanks for giving a light on success of family business. Really only key of success for family business is “Discuss all the aspect of business related to business growth with business family member and other partner.”


Regards
Carin

By Carin on July 27, 2010

sir,
  i am doing business of jacket working with the top brands of the india i ready to start the jacket business in the cannada please suggest me how to start the business
   
regards
bhagwant

By bhagwant on August 2, 2010

Hello Bhagwant,

If you are interested in moving to Canada to start a business, you may be eligible to immigrate under the Business Immigration Program. This program will provide you with the criteria you need to start a business in Canada as an investor

By Canada Business on August 19, 2010

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