The 3 fears of business owners contemplating succession.
Fear of losing control: Running a successful business is a lifestyle as much as it is a career. Handing the decision making over to someone, particularly an adult child can cause fear and resentment.
Fear of losing wealth: After a life time of challenging work, risk taking and building a successful business the business owners’ financial wealth is often concentrated in the business. Handing over control can bring questions around “how do we ensure our financial security in retirement?”
Fear of family conflict: Love and money, two of humanity’s most explosive subjects are underlying factors in business transition. Who takes over the business? How do we deal with the difference between fair and equal? How do we approach questions of in-law participation?
Between not knowing where to start and avoiding these fears, procrastinating becomes the default decision, it’s not a wonder that over 50 per cent of owner managed businesses have not started any kind of succession planning.
Studies show that over 80 per cent of business owners would like to keep the business in the family.
The process used by Copper Beech Company shows you first if you should keep the business in the family and, if you should, how to successfully address the three fears and give the family the best chance for a prosperous future.
Business Succession Resources
Estate planning is defined among financial professionals as the “organizing of one’s affairs to distribute the assets tax effectively.” The question however is: Should the assets be distributed? Is it… We seem to be hearing less about the coming transfer of wealth from the senior generation to the next generation, I think the baby boomers got tired of talking about… A key when I’m coaching somebody is to establish the goal or goals (maximum 3) that they want to achieve. Defining those goals is very hard for many. I asked… George stirred his coffee idly, “This time last year I was in Florida” he said. The business owner was sitting in front of me as we concluded our lunch meeting…. One by one they came over to me and shook my hand. Dad was in his eighties, Mom was mid-seventies, two sons and two daughters in their forties and fifties…. Succession planning is not about retirement, it’s about commitment and preparedness for the future. Through development of a plan family members are given the tools to help identify what they… A good definition of retirement is working because you want to work, not because you have to work. A well planned “retirement” gives you options. The goal should be to… Jack and his sister Jill sat in front of me looking expectant. Jack still had the bandages on his head from the nasty fall he had taken a couple of… Shortly before my father died, at the age of 80, I asked him why he and my mother had decided to up-root the family and move with their four sons… Judith watched in disbelief as the paramedics wheeled the stretcher carrying Fred’s body past her office. A distraught Emily, Fred’s wife, followed, supported by Al, Fred’s partner in the business….A new look at estate planning
Planning for Family Wealth Transfer
Who is the Future You
Business Owners Dilemma
The Power of Family Meetings
Succession planning is not about retirement
Would I like to retire at some point?
Life Insurance is a Valuable Financial Tool as a Business Transitions from one Generation to the Next
Investing in the Family.
The Boss Died, Now What?
