No matter where you are on the path to success as a small business owner, you need to stay strategic.
Are you aware of the unique considerations for family business survival? A staggering 70% of family-owned businesses do not survive into the next generation.
There are many ways you can prepare your family to take your business into the future when the time comes. Owning a family business is much more than hiring family members and passing the torch to them over time.
A family business needs to be structured with a succession plan that minimizes the tax implications for all family members. The key to the success of those family members who want to have a management role is making sure they’re equipped with the leadership skills and education to take the reins.
It’s also important to consider equality with other family members who choose not to be a part of the family business. Protect the business and your family from both financial and non-financial conflicts when they arise, as well as illness, disability, or even death. These factors are affected by many important decisions you make, including the business structure, the terms of written agreements among family members, governance policies, insurance coverage, leadership development, and payroll choices.
Family businesses have a much better chance of long-term success when the company’s leaders proactively plan and manage the business. Don’t lose sight of the business’ unique characteristics. Maintain a process to keep your succession plan, business plan, and operating policies current.
Call on your CPA to help your business and family make sound decisions for the future.