Succession can often be a difficult and painful topic of discussion, but it is also essential for any family business, as it allows you to plan for the future and make sure all your hard work won’t go to waste once you leave the company. But with so few family businesses surviving into the second or third generation, you might be wondering how you could make succession a painless and successful process. To help you ensure your family legacy lives on, here are some efficient ways you could secure the future of your family business:

Start by teaching the foundations

Among the most valuable things you could pass on to future generations is a deep understanding of your business, a cultural, historical, as well as a strategic one. It’s quite important for your children to know your company’s core principles and objectives that hold the entire business together, in order to ensure those efficient practices are upheld in the future as well.

So, aim to involve your children in the family business early on. Explain to them the policies you have, how they have evolved, and all the advantages they have. Encourage them to become a part of the company, whether that means taking on a small role or working with a mentor that will educate them, in an effort to learn more about your business.

Encourage the development of skills

Of course, hiring your children into existing jobs that are clearly defined and meaningful for their future is absolutely essential. Apart from allowing them to deepen their knowledge of business operations, this will also give them the opportunity to gain valuable experience and develop the necessary skills for taking over the family business.

However, this could also be taken a step further. If you want to nurture the next generation of leaders, you could also encourage your children to develop additional skills that don’t necessarily relate to the company, but will likely make them better bosses in the future. In most cases, this includes crucial soft skills such as problem-solving, decision-making, communication, and teamwork skills.

Create a good will and estate plan

Having skilled, interested, and enthusiastic family members might be essential for the further development and success of your business, but it won’t be enough to guarantee favorable outcomes alone. You will also need to draft certain legal documents while you’re still in charge, to ensure the future of your business will follow your guidelines and goals.

For that reason, it’s recommended to consult experienced and reputable wills and estates lawyers who will help you create the best plan for the future. By putting together the right documents such as wills and power of attorneys, estate planning with professional lawyers will give you the opportunity to name your successors and outline your wishes for the business, as well as determine all other necessary aspects of inheritance.

Determine who will be included

When planning your estate and the future of your company, deciding exactly who will be included in the family business will be an important part of the process. Different families will set different boundaries and create different plants, and the decisions you make will ultimately depend on what’s best for your specific situation.

For instance, you could choose to include your spouse, all of your offsprings, only the children who are truly interested in the business, or just those family members who have gained knowledge and experience through previous involvement. No matter what you decide, remember that transparency is key to a happy outcome.

Gather all individual perspectives

It can be quite valuable for all family members to engage in face-to-face conversations regarding the business. This allows you to gather unfiltered opinions on your business from your family members and additional information on the general career and life plans your children have for their future.

Some family members might be quite eager to take over the business, while others would rather follow their own path. Whether you are able to talk to them openly and directly or you decide to go through a neutral third party, having an understanding of your family’s wishes can allow you to adjust and adapt your business plans to better suit the future of your company.

While planning for succession can be challenging for any business owner, there are evidently ways to make it easier. Simply by being open and honest, encouraging involvement, and creating a suitable plan, you can secure the future of your family business.