Take Steps to Protect Your Family Business

There’s nothing more important in the world to you than your family. However, your family-owned business probably helps support your family. So, when it comes to protecting both your family and your business, you need to carefully consider your moves.

As you know, you face plenty of challenges to keep your business running smoothly — but it can be even more difficult to pass the family business on to your children or other relatives. In fact, according to the Small Business Administration, only 33 percent of family owned businesses survive the transition from first generation ownership to the next generation.

Why is it so hard to keep a family business intact? Sometimes, it’s because no one in the family is interested in running the business — but family businesses frequently disintegrate because of the lack of a succession plan.

To create a succession plan, your first step — and possibly the most important one — is to collect the thoughts and preferences of family members on their future involvement with your business. It’s essential that you know who wants to really do the day-to-day work and who is capable. During these conversations, you’ll also want to discuss other key business-succession issues, such as the retirement goals and cash flow needs of retiring family owners and the personal and financial goals of the next generation of management.

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For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.