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My kids don’t want the family business

On Behalf of | Aug 2, 2021 | Estate Planning

Starting your own company is often one step to achieving a bigger dream for you and your family. Building a business can be a legacy that you pass down to your children for their future and beyond.

When you started, you may have considered that your children might not be interested in the company you spent years building. Like many, you likely hoped they would become interested with time. However, in some cases, the children are not interested and want no part of taking over what you built.

Here’s what you should consider as you think about how to revise your succession plan for your business.

Choosing someone new

You may have had your heart set on one of your children or grandchildren taking over your business, but you need to make a new plan when they are not interested. Rather than holding out for the last moment to see if another family member will step up, you can have a more thoughtful transition when you find an alternative.

As you consider who will be your successor, think about the people who have supported your company over the years. Choosing someone who has demonstrated loyalty to the business could be a good candidate.

Supporting the successor’s future role

It is essential to set your successor up for their ultimate transition to operating your business. Part of assuming your role is understanding the details and responsibilities that come with your job.

Consider having your successor shadow several people in the company to have a clear understanding of the business’s day-to-day operations. You may also want to have your successor take classes that could develop their skills in the field.

How to handle inheritance

Your family member can still benefit from your company, even if they are not interested in taking the reins. Consider establishing a small board of directors for your business with ownership shares for the board members.