The entrepreneurial spirit is fueled by innovative, hard-working individuals that want to forge their own path. It’s this spirit that has supported the backbone of the American economy for years, with more than 90 percent of U.S. companies being family-owned or controlled, according to the U.S. Bureau of the Census. When you consider that family-owned businesses employ 62 percent of the country’s workforce (according to the Conway Center for Family Business), it can be worrisome that only about 30 percent of these businesses will survive into the second generation.
While these statistics may be surprising to first-generation family businesses, there’s plenty of time to identify the right succession plan to keep your business, and legacy, going from one generation to the next.
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The biggest challenge to succession planning is finding the time to devise an approach that’s right for you. The day-to-day demands of managing a business and a family, combined with payroll, employees and hundreds of other operational tasks leave little extra time to plan for the future.
Once you’ve decided to start planning, you’ll need to do some research. The following provides a quick start guide to kicking off your succession planning in way that will help preserve the business and your family:
Remember that planning for succession can be complicated and having a step-by-step plan can help to manage all the moving parts. Keep in mind that as the process moves forward – and the demands of the transactions escalate, you don’t have to do it alone.
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