Passing down the family business is a dream for all entrepreneurs who want to see the business they started, thrive in the hands of the next generation.

What To Avoid: Many founders have the tendency to hang onto control and not allowing the children to have enough say so or enough investment in the business. Entrepreneurs tend to be very independent, autocratic and wanting things to done a certain way. It’s hard for them to let go of those tendencies, but it has to happen if they want to be successful with passing the company down to the next generation.

What To Eliminate: Just because the last name is “Smith” doesn’t mean you should automatically get a seat at the Smith’s company boardroom table. Entrepreneurs need to set expectations on how kids will get to participate in the family business. 

Have You Asked The Next Generation The Question? : Sometimes founders have a dream that their children will start to take over the family business when it’s there time. However what if the children aren’t interested? This can happen if the founder starts to shut out the family from day to day interactions or if they are busy building the business and not spending time with the family. The children start to resent the business and want nothing to do with it, once they start grow older.

Now if you start to involve the children in the business at an early age, and show a positive way to ensure they can be enticed to join when they are older. Start having those discussions about what the children aspirations are and how the family business can help them achieve certain goals in life.

Being Prepared: When handing the family business down to the next generation, try to set up structures that will control what they need to do, and can do rather than allowing them to just run the company. Doing this can create leadership, ambiguity, and create a stressful work environment.

For more information about what to do when handing down a family business to the next generation, contact Windy City Web Designs.