Business Mentor: The challenges in family business succession

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We know how difficult it is to start a business. But running a family business and handing it to the next generation presents its own set of challenges.

When it’s time to hand over the baton, the founders of the family business may not find it easy to just let go. They may feel that they can still manage the business or maybe they are not confident that the next generation can sustain the business. Identifying the successor

The best bet is the one who truly has his/her heart in the business. The next manager should be enthusiastic about running the company, not just for the money. He/she should be happy to continue what the previous generation started. Once the succession plan is finished, it needs to be updated every few years. As change is inevitable, the succession plan should be revisited every few years to see if there are improvements that need to be implemented.A founder always sees his/her business as his/her baby, which makes it difficult to let go.

 

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