Do you talk about your business transition? ( 2min read)
Would you get engaged without learning your partner’s hopes for the future? Would you send your child to a school without first chatting with a few teachers? Would you hire someone without interviewing them? Would you hand a business over without first communicating and aligning with the successor?
The answer to all those questions seems obvious. Of course, we would never hitch our wagon to an unknown horse. We intuitively grasp the need to understand our options before we move forward. Clear understanding comes from thorough communication. Thorough communication should occur before we make any major decision.
However, we regularly encounter family business owners who are not prepared. They have not brought an adequate level of communication to the business succession transition. Daily demands of running the business and the complexities of family dynamics are some of the factors that can get in the way of agreeing on a company’s plans for the future. As a result, time and time again, we see family businesses without strong alignment fail to transition successfully from the owner to the next generation of successors.
Without the awareness and determination to overcome communication obstacles, these companies inevitably find themselves among the 70% of family businesses that fail to transition to the next generation.
The good news is that communication obstacles can be overcome. When family business owners engage in a series of key conversations with their successors, good things happen. The business not only survives, but thrives. When key stakeholders sit down at the table, they align on a joint vision, make decisions, and solidify plans. That’s how family businesses build a legacy that lasts through generations.
How well have you communicated with your family about your business’ succession? Take our free assessment today to learn if your family business is prepared for a transition.