Here are 4 tips for smoothly handing off the business to the next generation.
Find Common Ground:
- Rather than dragging out the process or leaving your kids/next generation in the dark, talk about your plans and listen earnestly to their ideas.
- Search for a balance between your needs and theirs not to mention the business’s.
Set Realistic Expectations:
- You need to plan the transition and how it will look like finance-wise for that time.
- Discuss the costs and optimise the budget according to the availability of resources.
Communicate Openly:
- Transparency is very important when dealing with a business transition, especially in cases where emotion is involved.
- It’s like you are handing over your baby to pursue further studies, you have to be open at your end and be vocal about your vision.
Consider a Trial Period:
- Start handing over sections of your business and figure out how they are handling it
- Eventually, keep adding the sections till they get a good idea of how to manage the business.
- For eg. When MS Dhoni retired from world cricket, he was still serving as a vice captain of the Indian team to guide his successor i.e. Virat Kohli.
To know more about this aspect in a family business point of view, do read this article: https://www.adp.com/spark/articles/2018/11/how-to-hand-over-your-business-to-the-next-generation.aspx
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