You may feel strongly about the wish for your child to take over the family business when you retire. Not only do you feel like they can continue fulfilling obligations to your customer base and your employees, but you hope to provide them with a good standard of living, much like what you have enjoyed throughout your career.
Improper planning and nepotism could potentially contribute to your business failing when your child takes the reins instead of the company thriving. How can you help ensure that your child is actually ready to step into your role at the family business?
Provide them with hands-on training and educational support
There is no better way to learn than to do for the average person. You can teach your child about your work on the job, which helps ensure that they know how to do the task you perform the exact same way that you do them.
Of course, running a business also requires other skills and education. You may want to enroll your child in certain business management courses so that they develop the other skills necessary to manage the business successfully.
Have other supports in place
When your child can no longer turn to you to ask questions about the company or the industry, they need to have someone they trust to help them find the right answers.
Hiring and promoting people who are good at their jobs will make them not competition for your child but a crucial form of support as they move into their new position at the company.
Be realistic about their abilities
If, after years of careful training, your child still struggles to do the work that you perform or if they express zero interest in the company or the industry in which it operates, they may not be the best choice to take over when you retire.
Talking to someone that you trust about your child’s abilities can help you make a more rational decision that looks not just at your family traditions and personal wishes but also at what is best for your child, your business and your employees.
Creating a viable succession plan, especially if you want your children to take over your company, requires a lot of effort. Focusing on the business can help you decide if one of your children is the best candidate to take over your position when you retire and set them up for success when they step into that role.