Why You Need a Succession Plan for Your Business

Business Succession Planning, FBN Trustees, FBNQuest

Every business owner wants their business to outlive them. For most, it’s their legacy. Of the potential list of successors, you’re most likely to leave this to your children.

But what if none of your children are interested in carrying on the family business?

It’s not unusual to see children respond with a non-committal shrug when a parent says “someday, this business will be all yours.”

While you love your business and have dedicated your time to growing that business, your children will sometimes have other plans that are not in line with your desires.

This presents a special kind of challenge for business owners who want to leave their businesses to their children. This is not unlike the dilemma Fidelis Okoro, a listener shared last week on our weekly Legacy Series radio show.

Fidelis Okoro has run his business, Okoro and Sons, for thirty-three years with branches in Aba, Ibadan and Kano. Over the years, he has provided his children with the best education while grooming them to take over the business; however, now that he is gearing to retire, he sees no enthusiasm from them to take over. He is seeking our counsel on how best to approach this challenge.

To address and/or prevent this dilemma, the first-level solution is to create a business succession plan. A business succession plan is the document that lays out the process of transitioning the management and ownership of your business to the next generation.

The business succession plan will often span a period of three to five years before the business owner retires and the recommendation is for the business owner to create a succession plan early in the business’ life-cycle. Preferably at the time the business breaks even.

The second level is to bring on board third party experts like FBN Trustees to develop a transition plan. They will help create an infrastructure for effective management and generational transfer plan, that will ensure the next generation enjoys the dividends payable from profits of the business, whether or not the children of the business owner get involved in the day to day running of the business.

FBN Trustees exists to help make succession planning easier.

A member of the reputed FBN Holdings Group, we are a team of experts who have in-depth industry knowledge, local awareness and relevant experience, having helped develop wealth transfer plans for families over several decades.

You can count on us to provide you with bespoke solutions to address your wealth transfer objectives, especially as we realise that no two individuals have exactly the same needs.

Begin today and afford your loved ones the opportunity to reach for success. Contact FBN Trustees to schedule a consultation.

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