One of the greatest legacies you can leave to the next generation of your family is an enduring business you have built over your lifetime and can transition.
Active Knowledge Question:
Have you asked your family whether they would like to be part of the business?
Today, in many countries, the trend is to sell off the family business and to pass on the resulting investment portfolio. Often the thinking, and belief, is that the next generation of family members are not interested in being involved in the business, are not capable of running it, the work and stress of managing it will be too great or a combination of all of these factors.
Too often, this is a decision made without allowing the next generation to reflect on and have an input into what the possibilities for the future may be. And this is a grave mistake.
The succession of the family business should not be seen as simply transitioning the existing business to be run and maintained as it has been in the past. What is being transitioned is an entrepreneurial spirit and business acumen. And, most importantly, it is a piece of family history that can serve as the glue for unity across future generations.
Responsibility to build and grow the business for future generations of a family is a very different ‘asset’ to the ownership of an investment portfolio. The message that it sends and the lessons that it will carry are indeed very different.
The greatest legacy that you can establish for future generations of your family is character, values, and a life purpose. A family business can carry all of these traits and a much more.
Further reading:
An entirely new level of performance.
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All the best in the success of your business,
Richard Shrapnel
