As an entrepreneur, you probably find it hard to find time to talk about the future of your small business. However, avoiding these discussions can often cause problems. By talking about your small business's future with your family and employees, it will allow you to be able to make more informed choices. These important conversations should include your spouse, your children, and your associates.
The retirement needs and desires of your spouse
In your mind you may have a clear vision of your retirement, and the future of your organization. However, don't assume that your husband or wife has the same visions. For instance, you may want to leave the workforce by age 60, but your partner may plan on working as long as he or she is able.
It is, therefore, essential to discuss your feelings regarding retirement with your spouse early on. You will need to discuss whether you want to pass on the business to your children, or sell it to an outside party. These discussions are necessary in order to avoid problems and misunderstandings.
Have an in-depth discussion with your significant other and make sure that you are in agreement about when to leave the workforce, and how the two of you want to spend your later years (travel, relocate, watch grandchildren, etc). Perhaps even write your feelings down for reference purposes.
Your children's dreams and aspirations
Are your children interested in running the business? Do they have other visions (career and family related)? Are they planning on still living close by? If they do want the business, then why? These are all essential questions to ask them as part of reaching a decision. You may also want to discuss such matters as the value of education, financial independence, and work ethic.
It is possible that your family has other dreams, and they may not have an interest in the business. But, if they do choose to continue the business, you should explain the advantages and disadvantages of owning a small company.
Conversations with the family can become complicated, particularly if there are multiple family members involved. You will need to place your children in different roles that best suit their individual skills (or whatever is best for the business). You must also be sure that your successors have the abilities and motivation to successfully operate the business. Another consideration is how to fairly divide the assets, from an continuation planning perspective. It may be needed to get professional advice to guide you through the transition.
The expectations of your partners and staff
Certain people, such as your business partners and your key employees should know what is going to take place. If you have this discussion early enough, it may save everyone from a lot of stress and confusion. This is also essential in order to prevent losing your most valued people, since they could resign from the firm due to the insecurity of their jobs.
So, it is vital to the future of your organization to open the lines of communication regarding your plans, early in the game. This will maintain your credibility, and create room for new ideas, growth, and other possibilities. By getting different personal views, you may discover solutions that will help the business as a whole.
In essence, it is critical that your retirement/exit plan includes open communication about your plans for the company. Well-timed discussions with all key players involved, will give you the best chances for a smooth transition. It is important for you to begin this process sooner than later.
The retirement needs and desires of your spouse
In your mind you may have a clear vision of your retirement, and the future of your organization. However, don't assume that your husband or wife has the same visions. For instance, you may want to leave the workforce by age 60, but your partner may plan on working as long as he or she is able.
It is, therefore, essential to discuss your feelings regarding retirement with your spouse early on. You will need to discuss whether you want to pass on the business to your children, or sell it to an outside party. These discussions are necessary in order to avoid problems and misunderstandings.
Have an in-depth discussion with your significant other and make sure that you are in agreement about when to leave the workforce, and how the two of you want to spend your later years (travel, relocate, watch grandchildren, etc). Perhaps even write your feelings down for reference purposes.
Your children's dreams and aspirations
Are your children interested in running the business? Do they have other visions (career and family related)? Are they planning on still living close by? If they do want the business, then why? These are all essential questions to ask them as part of reaching a decision. You may also want to discuss such matters as the value of education, financial independence, and work ethic.
It is possible that your family has other dreams, and they may not have an interest in the business. But, if they do choose to continue the business, you should explain the advantages and disadvantages of owning a small company.
Conversations with the family can become complicated, particularly if there are multiple family members involved. You will need to place your children in different roles that best suit their individual skills (or whatever is best for the business). You must also be sure that your successors have the abilities and motivation to successfully operate the business. Another consideration is how to fairly divide the assets, from an continuation planning perspective. It may be needed to get professional advice to guide you through the transition.
The expectations of your partners and staff
Certain people, such as your business partners and your key employees should know what is going to take place. If you have this discussion early enough, it may save everyone from a lot of stress and confusion. This is also essential in order to prevent losing your most valued people, since they could resign from the firm due to the insecurity of their jobs.
So, it is vital to the future of your organization to open the lines of communication regarding your plans, early in the game. This will maintain your credibility, and create room for new ideas, growth, and other possibilities. By getting different personal views, you may discover solutions that will help the business as a whole.
In essence, it is critical that your retirement/exit plan includes open communication about your plans for the company. Well-timed discussions with all key players involved, will give you the best chances for a smooth transition. It is important for you to begin this process sooner than later.
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