Succession Planning Matters
Why 80% Of Businesses Won't Survive the 2nd Generation? Here are 4 ways to change it!
80% of businesses are changing hands within the next 10 years and won't survive the second generation. 44% of them depend on their owners and 62% of businesses have no successor chosen.
No one spends time growing business or real estate assets without wanting it to succeed. Succession planning matters and it aligns your assets and your wealth with a strategy that will unlock value.
1. Plan for the future.
You poured yourself into your business and your assets - giving of your time, energy, and your finances. At this point, you need to consider that it is about the life you put into your work and not the other way around. First you need to start figuring out what you want to do, next you will want to consider what your goals are and ask questions.
First consider your portfolio and your goals:
- Do you have businesses and a real estate portfolio?
- What other assets do you have?
Build your wealth to be a lasting bridge to a more profitable future and make yourself aware of the risks and that you have options.
2. Understand the role your wealth plays in family and management
Planning can make life difficult and family can mire wealth and asset planning with significant complexity. There are a number of issues that you will have to deal with and some considerations you will need to make.
Here is what you need to consider:
- Is your business ready?
- Have you considered who will take over your business and who will manage your assets?
- Have you set up a plan and created a family council to talk through all the questions?
A good succession plan will divert these crises and help prepare you for the unexpected. The question is: why can it be so difficult? Succession planning is not just important for the business but also for the future of your family. It's about you and how you want to create a better future legacy for your wealth.
A thoughtfully governed plan can be an aid to everyone involved - not only in terms of wealth creation, but also in terms of promoting harmony, personal fulfillment and shared purpose.
3. Build the right team.
Building the right team means having a group of specialists who can help you understand different parts of the process and give you a better chance at succeeding when your transition happens. For you to achieve this success, you must go beyond maximizing the value of your business and assets and facilitating the transfer. In fact, your plan will need to consider all aspects of your wealth and how your team will help you to understand the process.
4. Cement your Legacy
Legacy is many things to many people. For some business owners, the term may connote nothing more than the continuation of business operations. For another, it may move beyond that into community relevance, reputation, and family involvement. Somewhere in the lifespan of your wealth and your business, it may become more than a mechanism for commerce and employment - it becomes an institution.
Why wouldn't you plan to protect the wealth you've worked so hard to create? At Klein Group, succession planning happens naturally from our comprehensive and integrated team who take into account an honest evaluation of the people, the property, and the expertise needed to protect and cultivate your wealth for a long lasting future.