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You
may have plenty of thoughts about how you will spend your
retirement...visits with the grandchildren, a trip across country, days on
the golf green. But have you thought about your business?
Did
you know that barely 30 percent of family businesses survive into the
second generation and fewer than 15 percent of them endure into the third?
A lack of solid vision and succession planning will prevent your business
from making it into that 30 percent. It's important not to see your
retirement as an event but as a process that your business must go
through.
Typical
succession plans have two important elements to consider:
Transferring
power-consider who is best suited to have control over and make decisions
about how your business operates. While you may want your family members
to receive the wealth concentrated in the business, you may not have a
family member who is qualified or who wants to run your business.
Identifying someone who can run the business and continue your vision is
not a decision to be left to happenstance or successful schmoozing.
Exercise care and consider what qualities make a good leader, who
demonstrates those qualities and who is really qualified to run your
business.
Transferring
assets-this is the process of transferring your wealth from the business
to any designated family members etc. The beneficiaries may be different
from the people to whom you have decided to transfer power, so this will
require explicit instruction and planning.
If
you would like more information, feel free to contact us. We can assist in
a smooth transition to retirement.
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