It is your responsibility as a business owner to groom family members or other people who have an interest in your business to take your place someday. It makes sense to create a training and development program, as well as develop strong communication and feedback methods, that will coach and mentor your successors so they are ready to take over your business when the time comes.
It's also important to structure your hiring and recruitment processes so you attract the best talent out there. This gives you the best pool of people to work with when developing your future leaders.
When it comes to passing down a family business, decisions must also be made carefully. You may have loved ones who have worked alongside you from the beginning and who share passion and drive to keep your business going after you are gone. Or, you may have family members who are interested in taking on and learning about the business, but they have never worked for you. Another scenario may be that you have family members who would like to inherit your business, but who plan on selling it to another party.
It's critical to discuss these matters while your business is thriving and while you are still in a leadership role and not in a situation where you are nearing retirement or looking for an exit strategy. Discussing family expectations and assessing your own desires for your business' future will help avoid arguments and disappointments — and possible legal action and estate problems — later on.
First Commonwealth Bank and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.