Giving Them the Business? Make a Plan
Unfortunately, most business owners fail to plan for the continued operation of their business should they become incapacitated or die. Only 30% of family-run companies today succeed into the second generation, and only 15% percent survive into the third generation. More often than not, the failure to plan is psychological. Contemplating one’s mortality is not considered to be a favored activity. Moreover, some business owners identify so closely with their business that they simply cannot comprehend the idea of their business being operated by anyone other than themselves. Others believe they have plenty of time to plan. When a business owner becomes incapacitated or passes away without a plan in place, the business always falters and often fails.
The succession timeline
A successful business succession plan includes a number of events that are carried out over time. The generally recommended time to plan for business succession is between the ages of 55 and 65.
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by: Gina M. Barry