Family business
Family business succession: where to start
A practical starting point for family business succession planning: the conversations, the roles and the timeline, before the lawyers get involved.
By Clyde LangleyUpdated 6 min read
Quick answer
Start family business succession by agreeing a rough timeline, deciding which roles need filling rather than which relatives need jobs, being honest about the skills a successor needs and talking openly as a family. Legal and tax structures come after those conversations, with your advisers.
Why succession gets avoided
It touches money, identity, fairness and mortality all at once. So it gets pushed back year after year, until a health scare or a fall-out forces it. Planning early is kinder to everyone.
Five steps to begin
- Agree a target date for the handover, even if it is years away.
- List the roles the business needs to run without the current leader.
- Describe what good looks like in each role before discussing who fills it.
- Talk honestly about which family members want those roles and are ready for them.
- Build a development plan for the successor, with real responsibility and real feedback.
Separate ownership from management
Owning shares and running the business are different things. Some family members may own part of the business without working in it. Making that distinction early prevents a lot of hurt.
Where a coach helps
A neutral coach keeps the conversation on what the business needs, helps each person say what they really think and turns good intentions into a plan with dates. Lawyers, accountants and tax advisers handle the structures.