For any entrepreneur that has started and then grown a business, there is the hope their family will keep the business running once they are gone. For entrepreneurs with children, many hope it will be the kids who take over running the company.
The problem is that this transition can often be trickier than it seems at first blush. With that in mind, there are a couple of good ideas to explore to help make the transition easier.
Parents First Need To Understand if Anyone Is Interested in Taking Over
The Soloviev Group is a great example of a family business passed from father to son. The path to the succession was in no way a straight line.
The son, Stefan Soloviev, spent years charting his course in business. He returned to working in the family business after he built his own success.
Parents running a successful business need to have in-depth conversations with their kids about their own goals and desires. It is in nobody’s best interest to have a child work at the business if they do not have a passion for being there.
Sometimes a good hybrid solution is for a child to work in a smaller role in the company. This path lets them see how things work, gradually allowing them to decide if they want to take on a more significant role.
If Kids Are Interested, They Need To Get Prepared
If you have kids interested in taking over the business, ensure they get an appropriate education. If you own a manufacturing business, there isn’t much point in your children getting a degree in art history.
Having your kids work outside of the family business for a few years after college is also a good idea. It is always helpful if they work in an industry similar to where your business operates.
Keep Roles Clear and Do Not Leave Too Soon
If you have several children interested in the business, make sure each has their own domain that is their responsibility. Look for ways that they can collaborate and work together while still maintaining their own place within the company. Even while your kids grow into the role of running the business, make sure you don’t just leave all at once. Let your experience work to their benefit.
Making the transition from parent to child in a successful business is immensely pleasing to everyone. The process can be virtually seamless with a little planning and hard work.
