Legacy transfer begins the day you start talking with your children about ‘their’ business.
Visionary Legacy: It is Our Choice as to The Legacy We Leave Behind
No one wants to think about the future without it being positive, constructive....profitable. From one generation to the next, it is much more common to see wills and trusts developed as the primary and singular step to passing on the Family Business than to see a formalized Legacy Planning process to 'map' out how to actually make that transition both relationally and professionally.
The fact is that out of every 3 families who successfully outline a financial transition for the family business, only 2 survive and carry on past the generation the business was passed on to. In addition, out of the 70% of family owned businesses who desire to transition their family enterprise, only 30% will succeed.
Topping this off, and the topic of this writing, is that out of 40%+ of all family owned business owners planning to retire in the next 5 years, only one half of them actually have a known successor in place or are organized with a plan on how to effectively continue on the family enterprise.
Relationship is the key to successful family business legacies
The Difference is 'Purposeful and Intentional'Pablo Picasso stated this poignant and painful reference to the Family Legacy dilemma;
"Only put off until tomorrow what you are willing to die having left undone."
Knowing that doing nothing is doing something should drive most of us to run toward the Legacy Planning process but the little obstacles of the daily responsibilities and lack of clarification on the "how to" plan holds many good leaders back from starting a plan let alone 'completing' one.
In my article, "The Founders Trap", the topic of letting go is a starting point to discuss the 'intentionality' of a plan and that any one of the current managers or family members can lead the way in organizing the process.
If you are reading this now and you are a 'planner or organizer' or your voice is well respected, you can share this article and other resources with your family to prompt the discussion with the topic in mind that without a plan, your family legacy and possibly the business itself has a greater risk of faltering as it transitions into the next generation.....assuming it transitions at all.
Have the desire to move the family business into the hands of the next generation is not a plan as fact never replaces fiction and visa-versa. Someone must step forward to prompt the discussion then the discussion must transition into action.
"Dreams are Only Plans without Action"I'm not exactly sure who said this specifically but I have been using this statement, printing it and pasting it up on the walls of my offices for nearly 3-decades. Starting with a purpose to organize a plan is the 'purposeful' reference but it it doesn't turn into action with 'intentionality'. Intentionality connotes a passionate drive to accomplish something, the stimulus to act when there is a purpose behind what it is that we would like to accomplish.
Just think of this: If you never walked across that room or made that call to that special someone in your life, you might not have had the family that you have today. Oh yes, of course there's a 'hormonal' thing going on when we're young and passionate but the memory of that drive is necessary to prompt or initiate the 'actions' of moving out of the 'wanting' and into the 'doing'.
Nick has been organizing details in family wine businesses for 3 decades
Nick Karavidas has dedicated over 3 decades to building and managing family business in the wine and vineyard trades. His specialty is in relationships and solidifying trust within the family and staff as a priority to effectively manage family businesses and transition successfully from one generation to the next. He is an effective coach who has developed tools and training systems for effective wealth transition through effective Legacy Plan development. Sign up for a Family Legacy Session Today.
For family business legacy questions, email Nick direct at nick@consultingwine.com