Transitioning of a family business across generations should really only be focused on seeding and nurturing the entrepreneurial spirit in that next generation.
Succession is honestly not about transferring the physical business that exists today but about growing the ability to ensure ‘the business’ continues to prosper under the next generation. Today’s business will need to evolve, adapt and may even be sold off to allow the next generation to continue to compound the family wealth beyond their generation. No business lasts forever and sooner or later it will need to reinvent itself because of changing markets, technology etc.
But many founders get caught with tunnel vision in thinking it’s all about ensuring the business they created continues and no one dares change it.
A fitting proverb is: “You give a poor man a fish and you feed him for a day. You teach him to fish and you give him an occupation that will feed him for a lifetime.”
The heart of succession is not about passing the existing business over, but teaching the next generation how to do business and to have a heart and passion for it.
You compound wealth over generations and secure family unity by passing over values and skills. Passing over wealth alone does little to ensure it is compounded by subsequent generations.
Active Knowledge Question:
Are you allowing your next generation to discover whether they have an entrepreneurial spirit?
Searching for the world’s best succession guide? Buy Transition – Orienteering The Five Lands of Succession.
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All the best in the success of your business,
Richard Shrapnel
