What to Consider Before Handing Your Business Over to the Next Generation
Business owners eventually will have to sell or hand their business off to the next generation. Let’s take a closer look at the concept of handing a business over to a family member and how you can make sure that the business is in optimal shape when the time comes.
If you want your business to be prepared for succession and the next generation, you’ll want to ensure the business has no key problems. One key recommendation is to focus on sales, marketing and distribution in the coming years, so that troublesome issues, such as sales plateaus, are properly addressed and hopefully circumvented.
You’ll want to consider boosting communication with key employees so that current management understands where all the employees stand. Skilled and motivated employees are rare commodities, and they are absolutely critical to the future success of any business. The article “Employees and the Long-Term Success of a Business” highlights this point. For any business owner considering handing over their business to their children, employee skill level, motivation and commitment will be essential to the success of the business during and after a transition period.
However, for a wide variety of reasons, it may not be feasible for your descendants and relatives to take over the business. They may not be capable of the demands or they may simply have no interest. But if you are able to successfully pass it down, you’ll want to optimise their chances for success.
Just as buying or selling a business involves preparation, the same holds true for passing the baton to the next generation. The sooner that you begin thinking about, and taking steps to prepare for the next generation taking over the reins, the better off everyone will be.
Copyright: Business Brokerage Press, Inc.
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