The 3 fears of business owners contemplating succession.
Fear of losing control: Running a successful business is a lifestyle as much as it is a career. Handing the decision making over to someone, particularly an adult child can cause fear and resentment.
Fear of losing wealth: After a life time of challenging work, risk taking and building a successful business the business owners’ financial wealth is often concentrated in the business. Handing over control can bring questions around “how do we ensure our financial security in retirement?”
Fear of family conflict: Love and money, two of humanity’s most explosive subjects are underlying factors in business transition. Who takes over the business? How do we deal with the difference between fair and equal? How do we approach questions of in-law participation?
Between not knowing where to start and avoiding these fears, procrastinating becomes the default decision, it’s not a wonder that over 50 per cent of owner managed businesses have not started any kind of succession planning.
Studies show that over 80 per cent of business owners would like to keep the business in the family.
The process used by Copper Beech Company shows you first if you should keep the business in the family and, if you should, how to successfully address the three fears and give the family the best chance for a prosperous future.
Business Succession Resources
The Logo There is a story, quoted in James E Hughes “Family Wealth: Keeping It in the Family” that I like. Marshall Lyautey, was one of Napoleon’s greatest generals. General… I stood beside Dr. Camille Rutherford of Brock University at the Ultimate Gaming Challenge in Niagara Falls early in May. We watched two young guys perform in front of an… Fear is a primal motivator in human beings and a major factor why most business owners haven’t done any succession planning. It’s hard for people who have spent a career… Lost in the day-to-day? Too busy trying to stay ahead of the bankers, bureaucrats and competition to think about succession or any kind of planning? There is a basic business… There was a battle going on inside me last year that took more than enough energy. It wasn’t an illness it was the emotional battle that follows the sale of… The business succession of our owner managed businesses is a big story among professional advisors, bankers and bureaucrats. The discussion seems to be less appealing with business owners themselves. I…The Logo
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