Family Business – 3 Succession Planning Secrets

All businesses need to have plans in place for the future. In family businesses, this can be much more challenging, unless care is taken to cover all the bases well in advance.

Where continuity of family ownership is one of the purposes of the business, time needs to be taken to ensure that family succession works.

Whilst there are many actions that can be taken to make sure that the legacy of the family business is maintained, there are three key components to factor in as a matter of course.

Secret 1 – Start Early

Many family businesses are met with challenges that come along unexpectedly. Be they critical factors or not – like the untimely death of a key family member, or where family members seriously disagree – preparation is the key.

By preparing planned courses of action with clear goals and timescales, it can be much less damaging should a crisis occur.

Because of the nature of family business, with generation following generation, preparation for those who will take over eventually can begin quite early on, as long as this is tailored to the ages of those individuals involved.

The best time to start is as soon as possible, before you perceive even the merest hint of issues arising. The worst time is waiting until the last minute.

Secret 2 – Dropping Dead!

Irrespective of the planning you do in the good times, there will always be the need for a process should a key family business member not make it in one day.

It could be a short period where they are ill and there will be the likelihood of return. It could be more serious with an extended period of absence; of it could be the unexpected death of a key figure that throws the business into dangerous territories.

Even with the best long-term succession planning in place, every family business needs to have a process that is clearly understood by all in the senior team should one of them go missing for a while – or longer. It needs to be robust; tested and viable and needs to be well communicated to all stakeholders whether working in the business or not.

In times of stress such like serious illness or even death, the business must go on – and this process needs to be in place well in advance of being required so that the business is not damaged.

Secret 3 – Step Back

Because of the nature of a family business, it can sometimes be difficult to be objective. From entrepreneurs who start a business to generations who take over from parents and even grandparents, they all have emotional ties to what is, quite simply, a business.

It can be difficult to separate the boundaries of what is a good vision for the future of the business if you aren’t able to be very objective indeed, so often there is value in bringing in a specialist to help.

There are many organisations out there who can be constructively supportive, whilst not being afraid to ask the most demanding questions of existing key personnel. Where such specialists add value is with their absolute focus of the right succession plan for the business, not for the emotional ties that so often get in the way.

There are three simple secrets to succession planning success. If a family business is strong enough to address the three issues here, they will be well on the way to ensuring the health of the business well into the next generation.

Planning for Your Business Future

Life can be unpredictable and does not always turn out as we planned. Being prepared for a catastrophic event is vital to the sustainability of every business. It is important to prepare for the worst case scenario, thus allowing you to relax and plan for the best. To help you create a plan that addresses the needs of your business, Below is information on the key components that are crucial to have in place to ensure the long term stability of your company.

Consult a Professional
Consulting with a professional will guarantee that you will understand the options available to meet the unique needs of your business. Therefore we recommend that you consult with the following professionals: an attorney, an accountant, and an insurance agent.

Insurance
In the unfortunate event of a death or disability, maintaining the financial stability of the business members is essential to the continuation of the business past the loss. We recommend requiring all members to have disability insurance, life insurance, and health insurance policies that are payable to the member’s families. This will provide financial security for the business members and their loved ones.

Every business should carry a life insurance policy on its owners. This will provide the partners/members/shareholders with the financial ability to purchase the business in the unfortunate circumstance of a death.

Prepare an Exit Strategy
It is important to have a plan in place that will allow the daily operations to continue if you are no longer able to participate in your business. The continuation of the company affects not only the owner’s family, but it also affects the job security of the employees. To protect your company, it is important to discuss possible third party options for ownership. Often times there are family members or employees that could step into your role in an emergency. Prepare that individual for this worst case scenario by speaking to them before an unplanned catastrophic event occurs.

In a partnership or corporation it is important to plan for the scenario that a partner/member/shareholder would want to leave the business. It is important to clearly define how the other owner(s) will buy out the individual and how the buyout will be financed. “Establishing the valuation process up front will avoid conflict at the time of the buyout” states Fred Meier.

Emergency Document
It is important to develop a document that lists your company’s combinations, log in information, passwords, daily systems, and other key information that is required for the daily operation of your business to continue. Keep this document in a safe place and communicate with employees what is to be done on a temporary and permanent basis if an emergency were to occur.

SaleHoo – 3 Excellent Reasons Why SaleHoo is Ahead of the Pack As an Online Businesses Resource

Finding the right product line as well as the right market to earn bigger profit margins can sometimes be very difficult, especially when you are in the wholesale business. The challenge is even greater once you find the market with a large business potential but with a much higher initial capital investment needed, and you discover that you do not have enough money for it.

If you want to be involved in an online wholesale business, you have to teach yourself the basics of using an online wholesale directory site in order to find what products to sell and which suppliers provide them. But just teaching yourself may not be enough. There are a lot of risks involved, and you may not want to gable on learning fast. And this is where SaleHoo comes in. SaleHoo is an online business directory site that not only helps you find what great products out there to sell but also which company can best supply you with them. However, there are other sites that also offer directory listings and you may wonder just that makes SaleHoo any different from them.

First is the availability of the copious experiences of old and new SaleHoo business members, which are available to you. The SaleHoo community is composed of thousands of long time and successful businesses as well as those just starting out and all their expertise and opinions are shared in the various forums moderated at SaleHoo. You can exchange opinions with them, seek help, advice and get to know other suppliers, dropshippers as well as businessmen whose assistance would be incalculable to you.

The next advantage SaleHoo has over others is in the form of market updates and reports available exclusively to members. Aside for having it delivered by the SaleHoo staff to its members periodically, any member can ask for an updated copy any time. Deciding which products and markets to enter can be easier and less risky with the information on market trends prepared by SaleHoo. With the report on hand, you will be aware of top selling items as well as market areas with high potential for profits.

Aside from all this, SaleHoo also takes care of assisting you to find the best supplier and dropshipper that would be most suited to your business. You will not have to worry about the legitimacy or reliability of the supplier or dropshipper you have chosen as long as it came from the SaleHoo list. And these are what make SaleHoo stand out from the rest of the business directories.