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A few things you should know about business succession

Transferring a family business from one generation to the next comes with many challenges. Most notably, generational disagreements could arise about the way the company should be managed. Younger generations might want to explore new trends with a better sense for where the industry is heading. Older generations may want to keep things the same and continue what's worked for decades.

The tactic of maintaining the "status quo" and the strategy of breaking free into the "new" both come with risk -- and it may not be possible for different generations to see completely eye to eye. This speaks to the uncertainty of how well a business succession could work for future generations. Nevertheless, in spite of their differences in opinions, there probably is one thing that both generations will agree on: It's important to pass down the family business regardless the future outcome.

In order to minimize the risks involved with passing down the business, the succession of the business needs to be planned and managed carefully. If successful, the business succession will support the continued life of the business. If lucky, the business will continue to grow under the leadership of the next generation and continue to benefit future generations for many years to come.

With every business succession plan, there are legal, financial and tax concerns -- in addition to concerns relating to the day-to-day running of the family business. No matter if you plan to pass down a floral shop, a plumbing business, a law firm or doctor's office, be sure to consider the details of your business succession plan with caution and care.

Source: Entrepreneur, "Passing the Family Company to the Next Generation Is a Complicated Business," William Bauer, accessed Nov. 24, 2017

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