Def i n ing Successi on Planning
For Family Businesses by Dr Edgar Paltzer
Defining Succession Planning for Family Businesses Succession planning is the process of determining who will carry on leading a business once the current owners retire or pass away, strategizing for the transition of ownership. With family businesses this can be complex, as emotions play a role in a professional situation.
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Transitioning Ownership and Management There are two ways to pass on the running of a family business. These are transferring ownership and transferring management. The two can be done simultaneously, but they do not have to be. Many family business owners choose to transition management long before they transition ownership, so they can retain a proportion of the power until the time is right.
Long-Term Outlook Succession planning for family businesses forms part of the long-term outlook for a company. Most successful transitions are those that are planned long in advance, so that all factors can be considered and the transition can be arranged as smoothly as possible. Family businesses are typically good at looking forward to the future. However, as many as 43% do not have a succession plan, according to a survey by PwC.
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You can learn more about succession planning for family restaurants by visiting the blog of Dr Edgar Paltzer.