Leaving a legacy for your business. When you started your business did you see it as a legacy you would leave to your children? It seems to me that we are not passing our businesses along to our children anymore. How many businesses in your town can you name that have seen two or more generations involved?

Planning Ahead Is Important

If your children are genuinely interested, there are some things you can do to make that transition smooth.

• Start early talking to them about the business. Share stories of why you started your business. Listen carefully to how they respond in these conversations. Do they seem to be genuinely interested in the business?
• Encourage them in their education. Help them see how what they are learning can be applied to what they will do in your business. Show them concise examples that demonstrate the importance of knowing things like math and English. You could even include physical education for keeping your body healthy and in shape to meet the physical demands of the workday.

Continuing Our Look at Leaving a Legacy of Our Business to Our Children.

• Their age is obviously a factor but if they are at least young teens, start with simple tasks that give them a chance to learn important skills. As they conquer these tasks give them more and more challenging tasks.
• As you do this, make sure you are exposing them to the whole picture of the business. Let them understand that there are parts that are fun and creative and interactive. There are also parts that are boring and physically exhausting and tedious. Understanding the full scope of what it takes to operate a business is critical to preparing them to eventually run the operation.

Adding Exposure to Your Business

Now that your child  has had some basic exposure to your business now it is time to find where their real passions lie. It is definitely important to know all aspects of your business but most of us have an area or two that are really our passion. This will probably be true with your child as well.

• As they experience the different departments and different tasks, pay close attention to what ignites their passion. You might assume it is the same as what ignites your passion but that might not be true. They might find they have a passion for numbers and are drawn to the financial side of the business. They might love being around people so they are drawn to where they can spend time- lots of time- with your customers. Encourage them in whatever area they are drawn to and find ways to help them grow their expertise in that particular area. This will help them love the business as much as you do.
• Continue to encourage them to gain knowledge in all areas of the business to make them a better leader.

Bringing It All Together for a Smooth Transition

Now we look at the logistics of passing your business on to you child. Part of this will involve legal and accounting advice. Part of it will involve some careful planning for making the transition smooth for you, your child and any employees you have. If you have a business coach, they can help you with the details as well as the mindset you will need to navigate the many emotions you will feel.

• By this time, you have hopefully established a timeline of events for when the transition will take place. Your child will have had ample time to learn and experience the reality of running a business and found his or her footing in all of this.
• If your business has other employees and is set up in departments, you need to make sure you craft the message of what is happening as your child spends time learning what they do. Open conversation will help thwart some of the rumors that can happen and relieve some of the anxiety for your employees wondering about the stability of their job. Because your child will be interacting with them, they need to be clear on the message as well, so they don’t send the wrong signal or give the wrong information.
• If you have key or longtime employees, the time will come for them to be part of the transition process. You will know when that is and what you will need to tell them. They will then become part of the transition team.
• Work closely with your attorney, accountant and key employees to make sure that all of the details are handled.
• Finally, make plans for what you will do with your free time. You will find some emotions and mindset to deal with. You will also find time on your hands that you didn’t have before. Entrepreneurs can really struggle with this if you are the kind that has poured your life into your business. Plan ahead on how you can use your time to bring you joy and make a difference. You might find a whole new level of satisfaction and joy in this next season of your life.

Are you planning on passing your business along to a member of your family? Share in the comments and what you have done to prepare for it.