Business succession planning is hard enough on its own, but it can be even more difficult if you own a family business that you wish to pass on to a relative. Making sure that your business stays successful and continues helping your family after you have retired can be a challenge, especially if you are dealing with multiple relatives interested in taking the helm, as well as possible hurt feelings and sensitive family members. 

How can you help the succession plan for your Texas family business go smoothly? Here are a few general tips: 

  • Consider group ownership. If you are faced with choosing between multiple children or other family members, group ownership might be the best choice for your company. While there will only be one CEO, more than one family member will have a say in the company’s direction. Just be sure that everyone is prepared for their role. 
  • Go for a gradual shift in power. A great business succession plan involves teaching, training, and gradual steps toward a shift in ownership. A gradual shift is better for the business, and better for shareholders and customers, as well. 
  • Don’t try to clone yourself. A common mistake of those developing business succession plans is the wish to give the business over to someone just like them—or to keep the business the same as it has always been. Don’t be afraid to choose someone with fresh ideas and different traits. 
  • Remember that personality can’t be taught, but skills can. When choosing the personnel to take over your business, understand that the person himself may be just as important as his experience and skill set. If you choose the right people and formulate a plan early, you will have time to teach them what they need to know before they take over. 
  • In some cases, consider looking outside the family. Although it might be a tough decision, you may wish to consider someone who isn’t related to you to take over your business. Perhaps your children aren’t interested, or perhaps they are simply not right for your company. While it may be difficult, talk to your family about your feelings, and explain your decision. 

Would you like to ensure a smooth transition and successful succession for your family business in Texas? Speak to one of our Austin business succession attorneys. Call Posey Law Firm today to get started: 888.269.1962.