- Not making the time to plan early enough.
- Making decisions to fill key positions with family members based upon emotion and bias, rather than an actual “fit” for that position.
- Placing close relatives into these key positions without first getting an objective assessment to verify the inherent skills to be acting in those positions.
- No development program in place to advance the individual performance of your people to sustain the profitability of the business.
- Merely dividing business equally for distribution to several family members, without understanding that this is likely to lead to conflicts or discord, cascading into personal family problems.
- Holding onto the reins and refusing to let go, and waiting too long to turn over areas of responsibility.
- Keeping family members on the payroll that are not performing, particularly in any key position.
- Not trusting a chosen family member to have the skills necessary to make decisions and to advance the business when it is time to take over a leadership position.
- Never “really” retiring, but running or interfering with the business from outside, or continuing to show up and run the business after claiming to have turned over responsibility.
- Making the plan for business succession without outside guidance from a professional with an objective perspective, and without a clear strategy to implement the transition.
Family owned businesses can gain a distinct competitive advantage and sustained profitability if the business transition is planned objectively rather than emotionally.
Connect with Perpetual Development to understand how you can implement a cohesive strategy for transition.