Family succession planning
Choosing who your successor will be and preparations for the succession.
Choosing a family member as a successor is a popular option for many owner-managers - especially when the person already works within the business. People from outside the family business might not have the necessary motivation or skill to run the business.
Family succession provides a feeling that the business has been left in the hands of someone who is committed and who will do all they can to bring continued success.
Making your choice
When considering who is best equipped to take the business forward you must remain objective. Be guided by the needs of the business, not emotional considerations.
When considering potential successors look for evidence of commitment. Assess skills and experience carefully, because the person you choose needs to have what it takes. Consider also whether they have the necessary leadership skills and personality to motivate and manage others.
Preparing for succession
Once you have chosen the person most suited to succeed you, start preparing them through education (informal and formal if necessary), training and personal mentoring.
Set a timetable for transference of power/ownership and use the time you have left working in the organisation to give them the benefit of your knowledge and experience. To test their readiness, you can begin to lessen your involvement and give your successor responsibility for making some important decisions.
Give them the necessary time to equip themselves with the skills and knowledge they need, otherwise you will be setting them up for a confidence-sapping fall.
See Succession planning in a family business - McKeever Hotel Group.