Family Business succession planning, by way of definition, is the
orderly transition of the company from the current generation of owners
to the next, the folks who are going to be owning and running the
operation in the 21st. Century. Seamless management succession and
ownership transition is the benefit, the goal, the objective on
virtually every successful business owner's mind.
The benefits of the family business succession process begin the day you get serious about designing the future you want for your company and your family. And the process continues forever, just like your family's involvement in the business will extend far beyond the lifetimes of everyone living today.
Here three key planning elements uniquely intertwined with each other to create the succession and planning process, at least one that is both seamless and financially successful.
Strategic planning is a key element of the family business succession process. You may not use such this expression in your daily discussions, even thinking it belongs exclusively to Fortune 500 companies, but strategic planning is what you're doing when you plan beyond the next twelve months - consistently rolling your planning ahead of you as you go. Family business strategic planning is also about management training and leadership development for your successors so they'll be ready to assume full responsibility when the time is right.
Let's face it, we've seen this from our industry peers, there are some mistakes your business can absorb and keep right on chugging along and there are some that will totally destroy what has been created. Today mistakes about where you're headed can destroy your momentum and ultimately your entire operation. Start today by identifying who's going to be in the next generation operating your business and then get started with the leadership and management training they'll need to be able to do so successfully.
Succession planning is the process where you pick the people to run the place in the future and begin empowering them to conserve what you've built and leverage your efforts to grow the operation bigger in the future. Growth is critical in order to generate the profits required to meet the security needs of the retiring generation, provide a fair share of the company's value to the heirs whose interests do not include the family business, and reward the successors for their risks and hard work.
When you start now to open up areas of responsibility, in the eyes of your successors not just yours, you'll send the right messages about your intentions for the future. Estate planning, the wills, trusts, buy-sell agreements, and all the contracts required to fulfill your succession and planning requirements DO NOT come last.
Family business estate planning is critical, too critical to be put off, because it establishes the ground rules, faces the tax consequences, and gives the force of law to the strategies that will result in your wishes being spelled out for all to see. Estate planning decisions need to be made today based on what you know today, where everything is today, and based on the best advice available today.
As time goes by and the other elements of your family business succession plan fall into place you simply have your advisors update your estate planning documents. How many movies have you seen where the old tyrant dies without having changed his will for decades - leaving the heirs and those who though they were heirs to fight over the spoils, resulting in another mystery for Lt.Columbo to solve. Don't let that be you!
Over the last thirty years people have said to me, "but our business/farm is different" and it is. Often this comment was made in an effort to convince me that their situation was so unique it defied the experts and therefore their lack of planning was justified.
Family business succession then is the result. Your company and family's unique situation addressed using well considered strategies that are being used successfully by others.
By WMEssick - mastermind group
Repost : Acarre Community Media
More information for these contributor us : b2b Mastermind Groups
The benefits of the family business succession process begin the day you get serious about designing the future you want for your company and your family. And the process continues forever, just like your family's involvement in the business will extend far beyond the lifetimes of everyone living today.
Here three key planning elements uniquely intertwined with each other to create the succession and planning process, at least one that is both seamless and financially successful.
Strategic planning is a key element of the family business succession process. You may not use such this expression in your daily discussions, even thinking it belongs exclusively to Fortune 500 companies, but strategic planning is what you're doing when you plan beyond the next twelve months - consistently rolling your planning ahead of you as you go. Family business strategic planning is also about management training and leadership development for your successors so they'll be ready to assume full responsibility when the time is right.
Let's face it, we've seen this from our industry peers, there are some mistakes your business can absorb and keep right on chugging along and there are some that will totally destroy what has been created. Today mistakes about where you're headed can destroy your momentum and ultimately your entire operation. Start today by identifying who's going to be in the next generation operating your business and then get started with the leadership and management training they'll need to be able to do so successfully.
Succession planning is the process where you pick the people to run the place in the future and begin empowering them to conserve what you've built and leverage your efforts to grow the operation bigger in the future. Growth is critical in order to generate the profits required to meet the security needs of the retiring generation, provide a fair share of the company's value to the heirs whose interests do not include the family business, and reward the successors for their risks and hard work.
When you start now to open up areas of responsibility, in the eyes of your successors not just yours, you'll send the right messages about your intentions for the future. Estate planning, the wills, trusts, buy-sell agreements, and all the contracts required to fulfill your succession and planning requirements DO NOT come last.
Family business estate planning is critical, too critical to be put off, because it establishes the ground rules, faces the tax consequences, and gives the force of law to the strategies that will result in your wishes being spelled out for all to see. Estate planning decisions need to be made today based on what you know today, where everything is today, and based on the best advice available today.
As time goes by and the other elements of your family business succession plan fall into place you simply have your advisors update your estate planning documents. How many movies have you seen where the old tyrant dies without having changed his will for decades - leaving the heirs and those who though they were heirs to fight over the spoils, resulting in another mystery for Lt.Columbo to solve. Don't let that be you!
Over the last thirty years people have said to me, "but our business/farm is different" and it is. Often this comment was made in an effort to convince me that their situation was so unique it defied the experts and therefore their lack of planning was justified.
Family business succession then is the result. Your company and family's unique situation addressed using well considered strategies that are being used successfully by others.
By WMEssick - mastermind group
Repost : Acarre Community Media
More information for these contributor us : b2b Mastermind Groups
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