Do you have family members in your business? Do you own the business with a brother or sister or both? Do you or your siblings have children in the business with you? If you answered yes to any of these questions, there is a good chance sometimes you will be facing the issue of business succession.
Business succession is something very few want to talk about, but everyone knows it has to be addressed sooner or later and most people prefer to kick the can down the road and not address it until it comes so serious, they have to. I know because I deal with this on a daily basis. If it is not an issue between the siblings who are running the business to the spouse of one of the siblings wanting to change the hierarchy of how things are being ran to whose child is going to be in charge when one of the family members who is in charge now steps away from the business either from retirement or death. Or worse yet having family members who own part of the business, but are not involved with the business and like to tell their sibling how to run the business.
Unfortunately, I do not have the solution to the situations I have mentioned, but I have experienced about every type of situation you can imagine, and I can tell you that unless some planning is done in advance the end is not going to be pretty.
Besides dealing with the ego and the dysfunctional part of the situation I have found it always comes down to the money. Someone thinks someone else is either getting more or going to be getting more than someone else. In order to address this issue, I have always recommended allowing me to do a market valuation of the business or in most cases multiple businesses with the business, because most people don’t know what they are fighting over in the first place, and they need the appropriate information to be able to make an intelligent decision. By understanding the numbers and finding out who enjoys doing what I have been able to help many business owners make peace among themselves and their families and stay in business and prosper.
Again, for more details and real life stories regarding succession planning and dealing with family issues send me an email at Terry@TerryMonroe.com and mention this article and I will send you a FREE copy of my book “Hidden Wealth” The Secret to Getting Top Dollar for Your Business. It is always better to learn from the mistakes and experiences.