Factors to consider if family is part of your succession plan
You’re approaching retirement, which means it’s time to step away from the family business. You have a succession plan in place, which involves leaving a large share of the responsibilities to family members.
Some of your family have helped you to establish your brand and grow the company, while others are just joining. What are some important factors to consider if family members are part of your succession plan?
Can you trust them?
The love that you have for your family and vice versa is undeniable. You have no doubt that they would never intentionally do anything to harm you. This isn’t a bad starting point for bringing someone into the business, but there is much more to consider.
Are they really interested?
Your company has been a success because of the passion you have for it. This applies to your staff members too. Do your family members share this interest? Perhaps they feel obliged to help because you’ve asked, but they’ve got other things on their mind that will take priority. Before enlisting the support of a family member, you need to make sure that they are willing and doing it for the right reasons.
Do you need contracts?
There can often be a temptation to promote and recruit family members on an informal basis, without contracts. Nonetheless, it may be in your best interests to treat the employment relationship in a similar fashion to other workers. There are no guarantees that things don’t go wrong with family members, and a legally binding agreement can offer security to your business.
Family members can make excellent business partners and employees, but you need to make sure you’ve given their roles careful consideration. If you have legal questions or issues, it’s wise to have experienced legal guidance.