Why succession planning is necessary
Part of the complexity in addressing succession planning in any family business is the fact family and business are inextricably linked. Where the family is there to provide love, care, nurturing and support, a business is there to produce goods and services as effectively as possible and the farm is in the middle. It helps to separate these three and succession online supports you to do this more effectively.
Consider this: If the plan is for all children to return to the family farm business one day then the focus 15 years earlier ideally needs to be on growth and expansion and this needs to be planned. Questions to think about – what attributes do you want the kids to have when they come back? What will be their role? What is their remuneration package? How are you going to transition the business management to them? How will you as the business owners exit the business, how will the next generation enter?
It’s really important to preempt what is coming up and make sure
the business is in the right stage to manage it.
We find those farmers which address these issues and manage it well over time are more successful. Research has proven those which address succession strategically over time are 30 percent more profitable. The energy that once was being spent worrying about all the issues and concerns is now redirected and being positively driven into the business.
There are a lot of fears about succession planning from all the members of the family so when left up to the family to sort out often family members don’t articulate what they think because they are scared about what other family members will think. There are difficult conversations which need to be had, family members avoid these as they fear the implications. These difficult conversations are often the blockages to effectively transitioning the business to the next generation. Left unaddressed these difficult conversations turn into little hand grenades and can blow up otherwise successful family businesses. Therefore the goal of succession online is to give you the tools to communicate in an effective, non-aggressive and non-confrontational manner.
Continue reading: How Succession Online can help