Big Picture - October 2016 - 17

asking a son or a daughter to cut their teeth while learning to run a much more complex business in a more challenging environment. The mistakes they make along the way will likely have a more dramatic impact on the business than perhaps they did 30 or 40 years ago when you were in the same spot. The family dynamic can also be a significant hurdle. If you do choose to leave your business to your children, understand that you may be setting the family up for some internal struggles. It's one thing to take direction from a parent, but it's an entirely different dynamic to answer to a sibling. And, even if some of your children are not directly involved in the day-to-day operations, from an estate planning perspective, they probably will be interested in ownership and how the business is being managed. In spite of the inherent challenges, there are still many positive reasons to leave your business in the family. If you make that choice, in order to avoid some potential pitfalls you need to first identify the most qualified person to manage the company. Even though you're leaving the business to your family, the most qualified person doesn't need to be related to you. Many family businesses are successfully managed by individuals outside of the family. Often, business owners default to an oldest child because they may have been involved in the business the longest or they believe that to be the societal norm, but that may not be the smartest thing to do. You have the option of keeping as many of your children involved in the business as you wish - just make sure the most capable one is managing the business. This approach could result in some very challenging and uncomfortable discussions with your children, but it will give the business the best possible chance to succeed. ly wish to manage your estate planning. This becomes a much easier task than passing it down to multiple heirs. This is also a much cleaner approach if you have one or more business partners outside of your immediate family.  The biggest advantage of selling your business is that it becomes very easy to distribute its value to your heirs. But, some business owners may choose to cash out and spend that money on themselves upon retirement, and there's certainly nothing wrong with that. Your success and the spoils that come with it are well-deserved.  A HEAD START BIGPICTURE.NET Whether you choose to pass your business down to your heirs or decide to sell as you retire, here are a few suggestions to assist you in the process: 1. Begin now. It doesn't matter whether you plan on retiring in the next year or in 10 years. You may even explore both options for the time being and lay out a plan for each. But put a plan together soon so you've prepared your business for the next phase no matter when that happens. 2. Secure a business valuation. Yes, this will cost you SELLING OUT some money, but without actually knowing what your If you decide to sell your business, your family members may business is worth, it's very challenging to make decisions feel like you're selling them out. However, if this is the best about succession planning. route to distributing the value of your business to your heirs, it 3. Communicate your plan. Don't keep it secret from might be the most unselfish thing you can do. Perhaps the your family because this creates unnecessary chaos. If a most significant challenge of selling your business as a part of worst-case scenario happens and you aren't around to your succession planning is that you no longer have a place for facilitate the succession process and you have neglected to your children and grandchildren to work. That may not sound communicate your wishes, there could be zero chance of like a big deal, but this will be a very difficult and emotional future success for your business. Having an open family decision that involves the entire family. A family business is discussion about the future of the company will create a always much more than just a place for your family to earn much higher probability of success than keeping your plans money. Often, this is your legacy. There's great pride among to yourself. business owners who have built successful companies where 4. Hire experts to help. Using professionals such as family and friends can land a summer job, earn their way accountants, attorneys, or financial advisors is absolutely through school, or even build a career. This is pride that's necessary. There are far too many complex, legal issues to been earned and often becomes very difficult to walk away deal with on your own. from. Nonetheless, selling your business may be the best thing Succession planning is undoubtedly a very difficult, for your family in the long run. challenging, emotional task to accomplish. As a result, it's The biggest advantage of selling your business is that it often one we simply avoid, but the decision has to be made. becomes very easy to distribute its value to your heirs. But, However you decide to manage your succession planning, some business owners may choose to cash out and spend that begin the necessary conversations and proper planning now. money on themselves upon retirement, and there's certainly You will save yourself and your family a lot of unnecessary nothing wrong with that. Your success and the spoils that grief in the future and hopefully be able to implement a plan come with it are well-deserved. The bottom line: Cashing out that will ensure the ongoing success of your company for allows you much more flexibility in terms of how you ultimate- many years to come. 17 http://www.BIGPICTURE.NET

Table of Contents for the Digital Edition of Big Picture - October 2016

Big Picture - October 2016
Contents
Insight
Wide Angle
Upfront
Business + Management
It’s Wise to Specialize
The Long, but Rewarding, Road to Sustainability
Cut It Out
R+D
Explorer
Big Picture - October 2016 - Big Picture - October 2016
Big Picture - October 2016 - Cover2
Big Picture - October 2016 - Contents
Big Picture - October 2016 - Insight
Big Picture - October 2016 - 3
Big Picture - October 2016 - 4
Big Picture - October 2016 - 5
Big Picture - October 2016 - 6
Big Picture - October 2016 - 7
Big Picture - October 2016 - Wide Angle
Big Picture - October 2016 - 9
Big Picture - October 2016 - Upfront
Big Picture - October 2016 - 11
Big Picture - October 2016 - 12
Big Picture - October 2016 - 13
Big Picture - October 2016 - 14
Big Picture - October 2016 - 15
Big Picture - October 2016 - Business + Management
Big Picture - October 2016 - 17
Big Picture - October 2016 - It’s Wise to Specialize
Big Picture - October 2016 - 19
Big Picture - October 2016 - 20
Big Picture - October 2016 - 21
Big Picture - October 2016 - 22
Big Picture - October 2016 - 23
Big Picture - October 2016 - The Long, but Rewarding, Road to Sustainability
Big Picture - October 2016 - 25
Big Picture - October 2016 - 26
Big Picture - October 2016 - 27
Big Picture - October 2016 - Cut It Out
Big Picture - October 2016 - 29
Big Picture - October 2016 - 30
Big Picture - October 2016 - 31
Big Picture - October 2016 - R+D
Big Picture - October 2016 - 33
Big Picture - October 2016 - 34
Big Picture - October 2016 - 35
Big Picture - October 2016 - 36
Big Picture - October 2016 - 37
Big Picture - October 2016 - 38
Big Picture - October 2016 - 39
Big Picture - October 2016 - Explorer
Big Picture - October 2016 - Cover3
Big Picture - October 2016 - Cover4
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http://www.nxtbook.com/nxtbooks/STMG/bp_201603
http://www.nxtbook.com/nxtbooks/STMG/bp_20160102
http://www.nxtbook.com/nxtbooks/STMG/bp_20151112
http://www.nxtbook.com/nxtbooks/STMG/bp_201510
http://www.nxtbook.com/nxtbooks/STMG/bp_201509
http://www.nxtbook.com/nxtbooks/STMG/bp_201508
http://www.nxtbook.com/nxtbooks/STMG/bp_20150607
http://www.nxtbook.com/nxtbooks/STMG/bp_201505
http://www.nxtbook.com/nxtbooks/STMG/bp_201504
http://www.nxtbook.com/nxtbooks/STMG/bp_201503
http://www.nxtbook.com/nxtbooks/STMG/bp_20150102
http://www.nxtbook.com/nxtbooks/STMG/bp_201411
http://www.nxtbook.com/nxtbooks/STMG/bp_201410
http://www.nxtbook.com/nxtbooks/STMG/bp_201409
http://www.nxtbook.com/nxtbooks/STMG/bp_201408
http://www.nxtbook.com/nxtbooks/STMG/bp_20140607
http://www.nxtbook.com/nxtbooks/STMG/bp_201405
http://www.nxtbook.com/nxtbooks/STMG/bp_201404
http://www.nxtbook.com/nxtbooks/STMG/bp_201403
http://www.nxtbook.com/nxtbooks/STMG/bp_20140102
http://www.nxtbook.com/nxtbooks/STMG/bp_mediainksourcebook1314
http://www.nxtbook.com/nxtbooks/STMG/bp_sourcebook1314
http://www.nxtbook.com/nxtbooks/STMG/bp_201311
http://www.nxtbook.com/nxtbooks/STMG/bp_201310
http://www.nxtbook.com/nxtbooks/STMG/bp_201309
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http://www.nxtbook.com/nxtbooks/STMG/bp_201305
http://www.nxtbook.com/nxtbooks/STMG/bp_201304
http://www.nxtbook.com/nxtbooks/STMG/bp_201303
http://www.nxtbook.com/nxtbooks/STMG/bp_20130102
http://www.nxtbook.com/nxtbooks/STMG/bp_20121112
http://www.nxtbook.com/nxtbooks/STMG/bp_201210
http://www.nxtbook.com/nxtbooks/STMG/bp_201209
http://www.nxtbook.com/nxtbooks/STMG/bp_201208
http://www.nxtbook.com/nxtbooks/STMG/bp_201207
http://www.nxtbook.com/nxtbooks/STMG/bp_201206
http://www.nxtbook.com/nxtbooks/STMG/bp_201205
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http://www.nxtbook.com/nxtbooks/STMG/bp_201203
http://www.nxtbookMEDIA.com