Some stakeholders in the business succession planning process are obvious, such as family members and employees who are involved in the business. Besides those people though, who else’s interests, wants, needs and desires do you have to consider when you’re looking at the family business succession planning process?
Below are four key stakeholders to consider:
- Your Spouse and Children: there are emotional issues that are going to be very important to consider as you go through this process. Additionally, it’s important to ensure that, if there is going to be a family transition, that the family members who are going to step up are indeed qualified. In some family contexts, ownership and management of a business might be seen as a birthright, but in other contexts, that’s not the case because the interests of the business override.
- Employee’s Families: not only are the employees important to consider, but think about all of the families who depend on the overall success of the business.
- Vendors, Suppliers and Customers: these people are also invested in the success of your business because, in many instances, their success is a direct function of your degree of success.
- The Community: your business may be contributing financially or contributing services and manpower to charitable deeds in the community. Not to mention, you’re a taxpayer.
Now that you’ve identified the four key stakeholders, click on the image above to watch our YouTube video to learn about the next steps to take in the succession planning process. This is the third video in our Business Succession Planning video series. Follow the links below to watch the first two videos: