Insights on Business
All In The Family
I love the idea of a family business. Parents and children working together in building a business that passes through the generations.
A business that supports all the family members as well as the families of the team that works together.
A great example is a business I know which was started in the shed of the parents some 15 years ago. It built steadily over the years with the business moving into premises and then the 3 children coming into operations. The business now has a significant turnover with a dozen staff and the whole family involved. It's really heartwarming.
Now comes the but.
But there is a potential problem brewing. Who is going to take over? Is it the right of the eldest? But what happens if the eldest is a good "doer" but not an entrepreneur or manager?
This highlights the need to have an open and frank family discussion whilst everyone is able to. There is likely to be someone upset out of the process, and there can be an element of division. But at least the wishes of the parents who established all this and gave the kids what they now have and will have is understood by all. It gives everyone the chance to have their say and get it resolved rather than becoming a huge legal fight at a time when emotions are running high.
People underestimate the value of agreements especially when all involved are family members
So have the discussion sooner rather than later to go over the wills and wishes of the parents, and ensure that the situation is understood.
When is your family meeting going to be?
Do your business legacy and exit plans need a review? Get in touch with the Clifton team to arrange a meeting.