If a business owner is planning to step down and hand over the reins to a family member, itâ€™s not just as simple as giving them the key and walking away. Itâ€™s a process that needs to be carefully thought out so that the transition is successful. The relative should feel confident in their new role, the employees should have confidence in their new boss, and the old boss needs to feel confident theyâ€™re leaving their business in good hands.
So itâ€™s really important to properly groom their successor for their new role. They need to make sure that their designated successor has a genuine desire to run the business, and the necessary skills. In other words, theyâ€™re in it for the long haul.
A good process is one that eases the previous owner out, while easing the new owner in. Control needs to be handed over gradually, so that the relative can spend time learning about all the new responsibilities and how the previous owner handled them.
Itâ€™s also essential to have a transition team in place who arenâ€™t emotionally involved, such as the businessâ€™s lawyer, accountant, and banking manager. Theyâ€™ll ensure that all the boxes are ticked and nothing gets missed.