Aftermarket Insider - April/May 2009 - (Page 11)

busIness suCCessIOn Passing your family business to the next generation can be a worrisome and timely process. The key to a smooth transition in leadership is to develop a succession plan well before anyone is ready to leave the helm. Examine the strengths and weaknesses of all possible successors and think about what’s best for the business. not every family member may want the responsibility or even have an interest in taking over, so be sure to hand it down to someone who is capable enough to plan out a prosperous future for the business. toolbox INSIDER VOLUME 58 family Business Succession Planning Have you been putting off succession planning? Use these tips for family business succession planning to get the process underway and ensure a smoother transition from one generation to another. If you want to pass your family business along to the next generation, putting off business succession planning is the worst thing you can do. A good succession plan can ensure that you have the funds you need to retire and that the business you have built continues to thrive in the hands of the next generation. 1) Start business succession planning early. Five years in advance is good. Ten years in advance is better. Many business advisors tell budding entrepreneurs to build an exit strategy right into their business plan. The point is, the longer you get to spend on family business succession planning, the smoother the transition process is likely to be. 2) Involve your family in business succession planning discussions. Making your own succession plan and then announcing it is the surest way to sow family discord. Opening a dialogue among family members is the best way to begin the process of a successful succession plan – one where close attention is paid to the personal feelings, ambitions and goals of everyone concerned. 3) Look at your family realistically and plan accordingly. You may want your firstborn to run the business, but does he or she have the business skills or even the interest to do it? Perhaps there’s another family member who is more capable. It may even be that there are no family members capable of, or interested in, continuing the business and that it would be best to sell it. Examine the strengths of all possible successors as objectively as possible and think about what’s best for the business. AFTERMARKET INSIDER | APRIL • MAY 2009 | 11

Table of Contents for the Digital Edition of Aftermarket Insider - April/May 2009

Aftermarket Insider - April/May 2009
President's Message
Association News
Declaration of Independents
Government Affairs
Member Profile
It’s Easy Being Green
Inside Technology
Company Profile
Market Research

Aftermarket Insider - April/May 2009