Many businesses are founded by inspirational leaders with a long-term vision for what they want their company to become. In some cases, that vision includes a desire for the business to be passed down to multiple generations of the founder's family. I have dealt with family companies now managed by the seventh generation.
These situations exist all over the world. It's becoming a timely issue across the country as Baby Boomers are increasingly reaching retirement age--called the "Silver Tsunami"--and looking to the next generation to take over running the family business . It's a beautiful notion to imagine a business persisting from generation to generation.
But it's not always easy. Making it work requires some planning and, in some cases, some good, hard objective looking in the mirror. So, let's talk about how you can successfully transfer a family business from one generation to the next.
One of the fundamental hurdles in any succession process, particularly in a family-owned business, is the current leader's readiness to step back. This could mean transitioning to an advisory role or taking a seat on the board. However, for the next generation to assume control, the current leader must be willing to relinquish management control --a task that can be more challenging than it sounds.
I've witnessed cases where the next generation is ready to lead, but the current leader hesitates to step away. This can ignite a significant conflict that permeates the company and the entir.
