THE BEAM // Special Edition: Family/Founder 1.2
Succession planning is a difficult issue for any company, but it is particularly challenging for founder and family led businesses. The definition of success in privately-held companies is typically more complex than meeting profitability targets and often includes building upon the founder’s legacy and preserving the family’s investment.
One piece of advice we give clients as we help them through this process is to determine what their goals are, beyond just the financials, from the outset. Many families and founders will have goals around developing younger generations or investing in their community that are equally as important as their goals around growing the business. It is important to clearly establish what these goals are and then use them to guide the succession planning process.
A recent article in Twin Cities Business Magazine titled, “Building Emotional Equity” has a great case study on how one family worked through this. Understanding the need for stabilizing the family as well as the business, they took intentional steps to invest in emotional equity as part of the succession planning process.
Letting go of your business and handing it off to a second generation or an outside leader is never easy, but by structuring your succession planning in this way, you can have peace of mind knowing the things you value most will be well taken care of.
To learn more about the work we do with family and founder owned companies, click here.