It’s the key to the future of the business: succession planning. Families are aware of its necessity, and deep down want a plan that ensures a smooth transition. But, often the act of creating that plan overwhelms families—because there are so many options.
Succession planning isn’t a one-plan-fits-all process. It’s unique for each family, dependent on situations, expectations, and personal desires.
Arguably the most common succession plan among family businesses is the “monarchy style.” As its name implies, a “monarchy” succession plan relies on the passing or stepping down of the current leader who’s replaced by an heir—typically the leader’s child. While this plan is traditional, it doesn’t work for every family. Primarily, the “monarchy” style can discourage the successor’s involvement in the business and stifle their entrepreneurial development.
The “monarchy” succession plan is only one of five styles. Learn about the other four in “Mastering Succession Styles in Family Businesses: A Comprehensive Guide.” Be sure to read to the end! The article presents four things to consider when choosing the style that will work best for you.
Read about the five types of succession planning here.
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