Home Advertise Contact Blog Advertiser Login RSS
Newsletter Signup

Buy A Business Opportunity of Franchise
Home-Based Businesses
Choosing a Business Opportunity Growth and Profit Marketing and Sales
Plans and Goals Running Your Own Business Start-Up
Working From Home Entrepreneur Exchange Feature Articles
Opportunity Community Opportunity Focus In The News

Happy first day of December! It’s December and the end of the year is in full-swing. Don’t go into the holiday travel season without the December Book-of-the-Month: Business Adventures by John Brooks.

December means that its holiday time. No matter what holiday you celebrate it’ll...

Female celebrities are breaking the stereotypes of Hollywood and diving into the world of business. Check out how these women are using their fame, fortune, and power to start their own companies. From media production to makeup, these Top Female Celebrity Business Owners are doing it all!

As...

With only a few weeks lefts in 2017, it’s time to get organized now! The holidays are around the corner and you don’t want to be scrambling at the end of the year. Use these Small Business Organization and Tax Tips to End 2017 to help you keep the end of the year stress to a minimum.

Happy...

Sponsors

STARSCAPES®
Imagine making up to $500 to $1,800 a day! Call or click now see how you can get your business for FREE! (602) 679-0257
Promotional Products Home Business
Run Your Own Business. Be Your Own Boss. Earn Great Profit Potential. Start At A Low Cost. Try It For Free! Learn More.
Residual Income Business Opportunities
Residual Income is the way that you work once and get paid multiple times—sounds great!... Read On
Top 7 Reasons to Consider a CMS
The internet loves obscure abbreviations. You can skip over most of them, but not CMS. What is CMS? read on...
The Ideal Length of Everything Online, Including Social Media Posts
When one of your busiest marketing channels limits you to 140 characters, you know that the internet sets its own rules.
Low Cost Business Opportunities to Own
Are your right for a Low Cost Business Opportunities to Own? The desire to own your own business... Read On
Why Advertise Your Business Opportunity?
Over the years we have been fortunate enough to receive quite a few testimonials. In fact, ... read on
National Property Inspections
Flexible work schedule, no experience needed, and complete training and support available!
How Many Leads Does It Take To Close A Sale?
This Featured Article is live on our blog and I know could be very insightful for connectivity and ROI.
Top 50 Home-Based Business Ideas
Home-Based Business ownership can be the most rewarding endeavor you will ever undertake. The new year... Read On
I Want To Buy a Business Opportunity or Franchise
Who are the types of people who buy a business opportunity or small franchise? According to people in... Read on
Copying & Publishing Business Opportunities
Today creativity abounds in the printing and publishing space with more unique business solutions than ever imaginable.
 
Resource Center > Article
Common Succession Planning Mistakes in Family Businesses
25 Apr 17 Posted by: Dr. Federer
in Plans & Goals
Share this Article:

Common Succession Planning - Legacy planning, as owners of family businesses know, is essential for the continued success of the business.


However, that doesn’t always mean that owners take the right steps to ensure a seamless transition of power within the organization - Common Succession Planning. As a family business advisor, a common occurrence I witness is that parents invite their adult children to join the family business with the intention of them taking the reins, however, when it’s time to pass the control over the adult children, the parents aren’t able to do it.

Why Won’t They Give Up Control? - Common Succession Planning

Also, many parents aren’t able to draw a distinction between family and business modes, so they find it difficult to trust their “babies” to be effective leaders, even though they believe them to be responsible adults.


  • Aren’t ready to let go and give up control

  • Don’t know what they will do after leaving the business

  • Feel their children have a different vision for the company and they aren’t comfortable with it

  • Did not set reasonable expectations and aren’t honest about their concerns and fears


A Case Study - Common Succession Planning

In the following example, we see this inability of a parent to differentiate between family and business modes and how this impacts the succession plan.

A business owner asked his daughter and her husband to join the family business. However, once the daughter and son-in-law joined the business, the Father didn’t trust them and ended up micromanaging the son-in-law and usurping his authority. The owner wasn’t able to respect boundaries and couldn’t get past seeing his daughter as his “little girl. This combined with the fact that he didn’t see the significance of trying to treat his son-in-law like his own son had an unhappy ending as the daughter and her husband ultimately left the business.

Avoid Succession Issues: Plan & Let Go - Common Succession Planning

One the main ways to avoid these issues is to put a succession plan in place that opens the lines of communication and guarantees everyone involved in the plan is on the same page. Expectations must be clearly stated and parents and children should continue discussions of the future, hold each other accountable, and regularly participate in the honest communication.

For a succession plan to be effective, owners must accept their role and begin the process of letting go and handing over more and more responsive to their kids. They must also be able to listen and accept constructive feedback from their children, rather than becoming defensive.
Legacy Planning Steps

When it comes to legacy planning, there are several major steps that need to be taken, including:


  • Strive to open lines of communication and move toward conflict resolution

  • Build a governance structure and hierarchy that outlines duties and responsibilities

  • Guide decision-making by drafting a family mission statement

  • Establish an informal advisory board to help with guiding the business

  • Host family meetings and family management meetings on a monthly basis to address any issues or concerns


Conclusion - Common Succession Planning

Not putting a succession plan in place is inviting disaster, not only when there are struggles between parents and children, but between siblings and other family members as well. When values aren’t aligned, it leaves the business open to distrust, poor communication about critical issues, and the inability to address critical decisions. In the worst cases, this failure to plan can lead to litigation. The legal issues and fights that occur when a family business succession plan has not been drafted can tear families apart, which is absolutely not what a parent-owner had envisioned for his or her legacy.

About Dr. Denise Federer:

Clinical psychologist and executive coach Dr. Denise P. Federer is the founder and principal of Federer Performance Management Group, LLC, a family business consulting firm. She brings more than 20 years experience as a clinician, researcher, speaker, author and consultant to her work as a performance coach.

Common Succession Planning

Related Blog Posts
22 Nov 16 Posted by: Kevin James Culp
in Plans & Goals

Free Lead Generation is a hot topic these days since many pay a pretty penny per portal to generate leads to increase ROI.

Free Lead Generation is part of any markets platform.  It is important to note that this November was 'nutty' for lack of a better word.  The purpose of this blog post...
12 Feb 15 Posted by: Kevin James Culp
in Plans & Goals
DID YOU KNOW THAT WE ARE OPPORTUNITY SALES, MARKETING & LEAD GENERATION SPECIALISTS? MAKE A FRESH SALES START!  Before you spend...
21 Nov 13 Posted by: Kathleen C Lanza
in Plans & Goals
Win! Win big! It’s a mantra that strikes at the core of what comprises most if not all “entrepreneur DNA,” and it’s especially top of mind in the run up to this year’s Super Bowl on February 2 in MetLife Stadium as four small businesses are battling it out in the make-or-break competition of a lifetime! In...
14 Nov 13 Posted by: Kathleen C Lanza
in Plans & Goals
With the 2014 tax return season coming to a rapid close and if you’re a small business owner in particular, finding ways to reduce your income tax rates is always a great goal. While it might sound counterintuitive, one of the best things you can do, as the old saying goes, is “spend money to save money.” Why?...
24 Oct 13 Posted by: Kathleen C Lanza
in Plans & Goals
Results from the newly released Deluxe Annual Holiday Shopping Survey™ show that 35 percent of consumers plan to shop local and small this year, compared to just 27 percent last year. And hey, a full third of the more than $600 billion that is estimated to be spent this year is quite a chunk of change! Could...
 
   

I had the pleasure of chatting with Shawn Pigg, CEO of Hotels Etc. for BusinessOpportunity.com's Podcast series that will be released very soon on our new Digital Platform.  Here is the transcript from that call for our regular RSS feed subscribers who get all of our posts first.

If you would...
Read More


Premium Sponsor