A little bit of therapy and a multitude of deep conversations.
That is what's involved in succession planning for family businesses. As our baby boomers prepare to retire, many business owners look to their offspring or other family members to carry on their business. Preparing the business and all the individuals involved for a transfer of ownership and/or responsibilities is a task often left to the final months leading up to the change in ownership or, even worse, it doesn't take place at all.
Some view succession planning in family businesses as a technical process that takes place through osmosis; if family members work closely side by side for many years that somehow all the pieces will fall into place without much foresight. Others believe the transfer in ownership of a business is a completely legal process and nothing more. I have seen these misconceptions, at best, lead to very bumpy transition processes and, at worst, to closed doors. Why? Because of a failure to grasp the importance of familial relationships on the whole process.
Family business can be messy business without real communication and recognition that each family member may exist in a different place along the journey to succession. We've seen this play out many times as a long-time owner, perhaps the father within the family business, who has built up his business from nothing, is unable to pass the reins over to a younger son or daughter; he hangs on without enough trust that the business will continue to thrive.
If you, or someone you know, is considering selling, transferring, or preparing a family business for eventual retirement, join our Chamber morning workshop on July 25th for "The Dynamics of Succession Planning in the Family Enterprise" with Judi Cunningham, Executive Director of the Business Families Centre at the Sauder School of Business. This workshop is intended for all family members (active in the business or not) from multiple generations, entrepreneurial individuals, shareholders, non-family executives, and professional advisors. Participants will come away from the workshop with an understanding of how to prepare ones business and family for a successful future. More specifically, you will learn about good governance, the difference between ownership and management transitions, and how a vision for the future in each of the three circles (family, owners, and manager) leads to effective transition plans.
The cost to take part and learn from Judi's expertise is $25 for Chamber members and $35 for future members. Registration details are available online at www.pgchamber.bc.ca or by phone at: 250-562-2454. We hope you can join us.
Until then, stay in the black and keep coming back.
