The Rural Voice, 2019-05, Page 62Have you ever gathered your
family, jumped in your car and just
headed out on the road with no
destination in mind? It is exciting and
chaotic. Since the objective is simply
to have fun, you do not need a map,
or a plan, or reservations. You follow
the road, turn left and right on a
whim, and stay where you end up at
dark. It all sounds like a wonderful
adventure.
While spontaneity may connect
you and your loved ones on the
family road trip, it could very well
create divisions during a family
business transition.
By nature, a business family
embraces different opinions, different
perspectives, different goals, and
different personalities. Aligning
family members along an agreed-
upon path can be challenging. Yet it
is an important step in transition
planning.
Identify your values filter
A family’s values are its way of
filtering and assessing the world
around them, and making decisions
when faced with important questions.
While values are often inherent in a
business family, they are not always
clear. Identifying and discussing
those values is a worthwhile exercise
when beginning a journey of
transition. The family can then refer
back to its values filter to guide them
throughout the process.
How to set your transition
itinerary
Business families embarking on a
transition journey should start by
answering three simple yet not-so-
simple questions: Where are we
going? Where are we now? How will
we get there?
Vision – Where are we going?
Unlike the random road trip, a
family business transition is most
successful when the family agrees on
the destination. Without a common
vision, business family members may
find themselves working at odds with
each other, or spending time and
money on actions that take them
nowhere. Even if the vision is
somewhat blurry, a family that sees
the same picture of the future is able
to focus energy on the right actions -
those that will take the family
members to their desired destination.
The current state –
Where are we now?
Every transition journey has a
starting point. A business family that
clearly understands the facts of its
situation and the challenges at hand
can eventually implement change.
This part of the planning process is
an opportunity for the family to
analyze where it currently stands and
engage in meaningful introspection.
Done in a respectful way, this
exercise can unite a family in the
next step: finding solutions.
Strategy development –
How will we get there?
Most business families are
entrepreneurial – show them a need
or a challenge and they will find a
solution. Strategies are the activities
the family will undertake over the
ensuing months and years to address
their identified challenges and reach
their agreed-upon vision of the
future.
Strategies for the transition of a
family business should encompass
three key pillars:
• Ownership - The fair transition of
the business ownership and
protection of the family wealth
• Business - The future success of the
business and the transition of its
leadership
• Family - The well-being of the
family
Strategies are most effective when
accompanied by an action plan, a
timeline, and an identified leader to
be accountable for implementation.
Three questions, three answers
A business family that sets out on
a transition journey without a plan is
at risk of becoming one of the
unfortunate family business statistics.
The Business Transition team at
BDO includes trained facilitators and
Family Enterprise Advisors. We help
business families communicate and
collaborate to answer the three key
planning questions. We then
accompany them on their journey to
ensure the best possible outcome. ◊
58 The Rural Voice
The family secret
to business
transition
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