Many business owners assume that their children will want to take over the business. This may have been their dream from the very beginning. They’ve been building the company up so that they can give this valuable asset to the next generation and set their family up for the foreseeable future. A business that consistently generates revenue is more than just a one-time gift.
But it’s important for business owners to remember that some children do not want to be involved with the company. Many experts advise that business owners shouldn’t pressure their children to take over. It’s best for both the child and the company if they feel drawn to that business on their own and it’s something they want to do. If they feel like they have been forced into a leadership position, they’re going to be unhappy and the business is likely to struggle.
Family conversations
When creating a business succession plan, then, it may be wise to have it be a family conversation. As the business owner, you do get to make your own decisions regarding who inherits the business, how leadership roles are divided, when you start training the next CEO and much more. But you should include your family in this process so that you can find out what they want, what they expect and if they’re even interested in being involved.
After all, there are other steps you can take if your family doesn’t want to inherit the business. You may sell it to a third party and split the money that you earn between your beneficiaries. If you know in advance that this is the best option, it can help things go more smoothly. Carefully consider all of your legal options at this time.