Family businesses are a valuable part of the American economy and provide jobs for countless individuals. If you own a family business, you are probably well aware of the challenges and difficulties that go along with this unique and fulfilling lifestyle. One continued challenge that all business owners face is planning for the future of their business. They know that they will eventually need to choose a successor to take over the business when they retire who understands the business and can manage it in a way that brings continued success. There is no perfect way to choose a successor, but there are some guidelines that can help you make the most informed decision possible.
Develop a Future Plan Now
Even if you are years or decades away from stepping down as the head of your business, you should start preparing for the future now. It is unpleasant to think about, but unexpected illnesses and other unforeseen events happen to people every day. By creating a business succession plan now, you know that your business will be properly managed even if you are not around to do so yourself. Develop a comprehensive business plan which addresses your goals for the future as well as your current business strategies and daily operations.
Choosing a Successor Who Will Continue Your Legacy
One major decision you will need to make as a business owner is who should be your successor. It may be a good idea to keep several people in mind for this extremely important role so that you will have a back-up if something unexpected happens or your chosen successor does not decide to continue with the business.
Perhaps the most important quality a potential successor should have is a love and passion for the business. The last thing you want is a successor who does not take their job seriously or does not share your enthusiasm for the business. The individual or individuals you are considering to be your successor should be highly committed to the business and willing to do the work necessary to grow into a position of leadership.
Choosing a successor well in advance can give you the time to help him or her develop the skills necessary to effectively run the business. Studies show that only about 30 percent of family businesses survive the transition from first-generation to second-generation ownership. It is crucial that you take the steps necessary to give your business the best chance possible at continued success.
Contact a Chicago, Illinois Business Succession Lawyer
For seasoned assistance with choosing a business successor, buying or selling a business, drafting contracts, and many other business concerns, contact an experienced Arlington Heights business law attorney at A. Traub & Associates. Call 847-749-4182 to schedule a confidential consultation today.