Succession Planning
Family businesses possess many fantastic qualities, accolades, and working practices. However, one area where they often struggle is succession planning.
If this is the first time you’ve come across the term succession planning, don’t worry—let me explain. The concept is simple: how do you step down or take a step back from your business and allow someone else to take over your role without everything falling apart?
Handing over the reigns of a family business can be a sensitive and sometimes contentious issue. It’s often considered a taboo subject, and while the transition can go smoothly, it can just as easily go disastrously wrong.
Below are two typical viewpoints—one from the Incumbent and one from the Successor. If either of these sounds familiar, you’re not alone. I work with clients to help them plan and facilitate these crucial conversations, so they can successfully pass down their business and secure their legacy.
The Incumbents Viewpoint
A big milestone birthday is looming, and you want to work less. A three-day working week would be nice, retirement would be even better. However, there’s a big question mark hanging over someone’s head. The next in line to take over your role simply isn’t stepping up. You can’t understand why they’re not grabbing this incredible opportunity with both hands. If you were their age, you’d have jumped at the chance. The business has provided you with a comfortable lifestyle for the past 20 years, there’s plenty of work, and you’re still in demand.
Over the last few years, I’ve had many conversations just like this. Several business owners have said things like, “My son can’t even get out of bed in the morning…..what keeps you motivated?” or “I want to work less, but nothing happens without me……how did you take over from your dad?” A recurring theme emerges: one generation wants to hand over the business to the next, but for some reason, it’s just not working out as expected.
This is a common scenario. You start a business, nurture it like your own child, and watch it grow into a successful enterprise. Then along comes your child, or someone in a similar position, who hasn’t experienced that journey. They have little or no emotional connection to the business. To them, it’s just a job. They show no interest in the finances or operations, don’t fully understand the product or service you offer, and sometimes even struggle to show up on time. So, what do you do?
There is hope. Your dream of building a family business that successfully passes from one generation to the next can be realised. Your legacy, one that provides financial security for generations to come, is entirely possible. I’ve done it. And now, I work with clients to show them how, sharing the lessons and experiences I’ve gained to help make the process smoother for them.
The Successors Viewpoint
You’ve done your best to step up and take ownership of the family business. You’re now the main contact for customers and the one managing projects. Everyone in the business reports to you. It feels like you’ve taken on immense responsibility, along with the heavy burden that often comes with it.
But there’s one major problem: your beloved father, mother, or another family member keeps interfering. They worry about minor issues you’ve already planned for and simply won’t let go. Their presence is becoming a disruption in the workplace. Staff are confused, should they report to you or to them?
You still have no clear understanding of the financial position of the business, as this information is tightly guarded. Meetings with accountants happen without your involvement. You’re eager to take on more responsibility, but they’re not allowing it and it’s stifling your growth.
I’ve had conversations with exceptional young people who genuinely want to take over the family business. Yet they often express their frustrations with comments like, “They keep pestering me, checking if I’ve done this or that, I feel micro-managed,” or “Staff don’t listen to me because Dad comes in and tells them something different.”
When one generation hands over a family business they’ve built from scratch, or have been a custodian of for years, it can be an emotional and anxious experience. If you don’t take time to understand and appreciate that, your role becomes even more difficult—and in some cases, almost impossible.
I’ve been in that position. I understand the love and sometimes the frustration you feel for your father, mother, or other family members. I also know what it’s like to step into the shoes of someone admired and respected. Taking over from a strong personality or industry figure can be daunting. People may expect you to act just like them.
But here’s my advice: develop your own leadership style. Find your individuality. And most importantly, be the best version of you. However, if this feels overwhelming and you are unsure where to start, book your initial call today.