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one of the major problems most family business have is the lack of preparation for managerial...

one of the major problems most family business have is the lack of preparation for managerial control to next generation. the fact is that one generation exceeds the other with biological inevitability. why is it important for family business to prepare a succession plan

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Succession plan- This plan analyzes the intellectual talent and leadership qualities and make the individuals ready for present and future business responsibilities. It really develops a well formulated and effective business plan for family. It makes a balance and smooth transition between retirees and successor.

Succession planning involves:

  • STRATEGIC PLANNING
  • FINANCIAL PLANNING
  • ESTATE PLANNING
  • HUMAN RESOURCE PLANNING.

Importance of family succession plan- Some points are as following:

  • It resolves the family business disputes and issues.
  • Wealth of family is protected and secured.
  • Family and business are maintained in such a way so that there is trust, integration and synchronization between family and business.
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