The reality behind why the 43%
Growing a family business in today’s changing socio-economic environment is really challenging, even baffling to certain extent. Is it not almost a cliché to say that handing over the business from one generation to the other is another challenge altogether? Unfortunately, it can turn out to be a source of conflict in some situations.
The fact that 43% of family businesses do not have their succession plan in place made us question ourselves to understand the why 43%.
We wonder why despite family businesses having a son (or daughters in case of some businesses) to take their business forward, missed on being prepared in time for the transition and mainly the way of transition.
Where do they miss? Why?
In our findings, at large, the where and the why does not fall under the
- lack of knowledge, or
- the lack of wisdom, or
- lack of love, or
- lack of support, or
- lack of readiness, or
- even sometimes lack of awareness.
But, ironically, it falls under the ‘misplaced concept of succession plan with will creation’
To help understand succession planning better, we share with you a glimpse of what succession planning is and what it is not
- It is really about what it takes to keep and grow the business
- It is about what role one shoul take for the keeping and growing the business
- It is about the responsibility and accountability that comes with the role
- It is about what the person should get to fulfil the role
- Not the will
- Not about who gets what
- Not about the property/asset distribution
- Not about treasury distribution
- Not about who gets which business