Are you planning to pass your family business to the next generation? Check out these tips to ensure a smooth transition.
Did you know family run businesses account for 70% of all businesses in Australia! However, many people don’t know how to successfully hand over their business to the next generation.
How to choose a successor
When choosing a family member as a successor, think about who will be best for the business. It’s an attractive option to set up your children financially but it’s also important to be sure that they have the necessary set of skills and the commitment to take over your business. Also remember to be aware of conflict if others are equally interested in taking over, especially if some non-family members are more qualified for the job.
One strategy to help choose an appropriate successor is to have a panel of non-family members conduct interviews and offer advice on candidates. This will remove bias and show a considered approach towards the future of your business.