It’s Good to Talk—and Even Better to Plan the Future of Your Family Business -part 1 of a series of blogs on business succession planning

Running a family business isn’t just a job; it’s a lifelong commitment. You’ve poured your time, energy, and resources into making it successful. But amidst the hustle of daily operations—managing accounts, solving problems, and keeping the wheels turning—it’s easy to push “planning for the future” to the bottom of your to-do list.

If you don’t prioritise planning for the future, you might risk leaving your loved ones unprepared—or worse, without a business to inherit. STEP’s recent survey revealed that one in four family business owners’ biggest fear about lacking a succession plan is the closure of their business.

The good news? Taking the first steps towards planning isn’t as daunting as it seems.

Step 1: Start the Conversation

Talking about the future of your family business doesn’t have to be formal or overwhelming. Here’s how you can make it easier:

1. Start small. Simply letting your loved ones know you want to discuss the business’s future is a powerful first step.

2. Keep it casual. Discuss it over a meal, during a walk, or at a relaxed moment when everyone feels comfortable and open.

3. Be direct. Talking openly about your wishes for the business can save your family unnecessary heartache and financial strain down the line.

Family business owners who have initiated these conversations often find that it not only eases their worries but also strengthens their family’s commitment to the business’s future.

Step 2: Focus on What Matters

Once the conversation has begun, shift the focus to the aspects that truly define your family business:

4. Positives of the Next Generation: Younger family members may bring fresh perspectives, such as leveraging technology or understanding modern trends. Leaving them unprepared benefits no one—use these discussions to share knowledge and insights.

5. Family Values: What does your business stand for? Whether it’s community, innovation, or legacy, make sure the next generation understands and upholds these values. A family constitution can help solidify these principles.

6. The Unexpected: Life is unpredictable. Planning for worst-case scenarios—like illness or sudden absence—ensures the business can continue to thrive.

Step 3: Plan, Review, and Secure

When it comes to securing your family business’s future, here are some actionable steps:

7. Get a Will or Review Your Existing One: A will not only protects your personal wishes but also ensures the business is passed on to the right people. If you already have one, review it every five years or after major life changes like births, divorces, or new partnerships.

8. Outline a Succession Plan: Define who will take the reins if you’re unable to. Discuss this plan with your family to prevent confusion and conflict later.

Seek Professional Advice: Ross Holmes Virtual Lawyers Limited, can help you update your will, create trusts, and set up Enduring Powers of Attorney, so that you can ensure business continuity.

Why Start Now?

Succession planning isn’t just about ensuring your business survives—it’s about creating a legacy that thrives. By starting the conversation and taking actionable steps, you not only protect your hard work but also empower the next generation to build on it.

Remember, planning for the future of your family business is an investment in both your family’s strength and the business’s success. It all starts with a conversation—so why not start today?