{"id":3304,"date":"2019-06-10T11:26:38","date_gmt":"2019-06-10T10:26:38","guid":{"rendered":"https:\/\/www.goodmanjones.com\/blog\/?p=3304"},"modified":"2019-06-10T11:32:21","modified_gmt":"2019-06-10T10:32:21","slug":"the-true-value-of-strategic-succession-planning-for-families-in-business","status":"publish","type":"post","link":"https:\/\/www.goodmanjones.com\/blog\/the-true-value-of-strategic-succession-planning-for-families-in-business\/","title":{"rendered":"The true value of strategic succession planning for families in business"},"content":{"rendered":"<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-3305 alignright\" src=\"https:\/\/www.goodmanjones.com\/blog\/wp-content\/uploads\/2019\/06\/iStock-171292717-300x200.jpg\" alt=\"\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.goodmanjones.com\/blog\/wp-content\/uploads\/2019\/06\/iStock-171292717-300x200.jpg 300w, https:\/\/www.goodmanjones.com\/blog\/wp-content\/uploads\/2019\/06\/iStock-171292717-768x512.jpg 768w, https:\/\/www.goodmanjones.com\/blog\/wp-content\/uploads\/2019\/06\/iStock-171292717-1024x683.jpg 1024w, https:\/\/www.goodmanjones.com\/blog\/wp-content\/uploads\/2019\/06\/iStock-171292717-624x416.jpg 624w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/p>\n<p>Taken together, some of the statistics from a recent Family Business Survey are particularly enlightening.<\/p>\n<p>The survey found that the overwhelming majority of family firms (85%) intend to remain family-owned. Yet while almost half (46%) are worried about the long-term sustainability of their company, only 38% have a succession plan in place.<\/p>\n<p>For family businesses, long-term success is especially dependent on effective succession planning. Yet it\u2019s hard to get right \u2013 and that\u2019s precisely because they\u2019re family-owned. It gets complicated by the personalities, relationships and emotions of the people involved.<\/p>\n<p>That\u2019s why it has the potential to go devastatingly wrong.<\/p>\n<p>In one case I know of, a well-meaning father divided his business between his two children, without discussing their own aspirations with them. One sibling had no interest in being part of the firm, and simply wanted to cash out. The result was a bitter lawsuit, causing untold damage to the family dynamic.<\/p>\n<h2>A strategic approach<\/h2>\n<div id=\"attachment_3306\" style=\"width: 160px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-3306\" class=\"wp-image-3306 size-thumbnail\" title=\"Charlotte at the 2019 Family Business of the Year Awards \" src=\"https:\/\/www.goodmanjones.com\/blog\/wp-content\/uploads\/2019\/06\/D8ZuHl3WkAAFFwk-150x150.jpg\" alt=\"\" width=\"150\" height=\"150\" srcset=\"https:\/\/www.goodmanjones.com\/blog\/wp-content\/uploads\/2019\/06\/D8ZuHl3WkAAFFwk-150x150.jpg 150w, https:\/\/www.goodmanjones.com\/blog\/wp-content\/uploads\/2019\/06\/D8ZuHl3WkAAFFwk-45x45.jpg 45w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><p id=\"caption-attachment-3306\" class=\"wp-caption-text\">Charlotte at the 2019 Family Business of the Year Awards<\/p><\/div>\n<p>While participating in the judging process for the <a href=\"https:\/\/www.familybusinessunited.com\/resources\/family-business-of-the-year\/\">2019 Family Business of the Year Awards<\/a>, it was clear to me that successful firms approach succession strategically.<\/p>\n<div id=\"attachment_3307\" style=\"width: 160px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-3307\" class=\"wp-image-3307 size-thumbnail\" src=\"https:\/\/www.goodmanjones.com\/blog\/wp-content\/uploads\/2019\/06\/D8Z17HfW4AENMz5-150x150.jpg\" alt=\"\" width=\"150\" height=\"150\" srcset=\"https:\/\/www.goodmanjones.com\/blog\/wp-content\/uploads\/2019\/06\/D8Z17HfW4AENMz5-150x150.jpg 150w, https:\/\/www.goodmanjones.com\/blog\/wp-content\/uploads\/2019\/06\/D8Z17HfW4AENMz5-45x45.jpg 45w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><p id=\"caption-attachment-3307\" class=\"wp-caption-text\">Family Business of the Year Awards 2019<\/p><\/div>\n<p>They put a professional decision-making process in place, often with the help of specialist<a href=\"https:\/\/www.goodmanjones.com\/blog\/the-real-value-of-a-family-business-adviser\/\"> family business advisers (FBAs).<\/a> This replaces emotions and knee-jerk reactions with logical and rational long-term business planning.<\/p>\n<p>The task of strategic succession planning should begin with an objective information-gathering exercise. At Goodman Jones, we do this by speaking to all family members, whether they work in the business or not, as well as major stakeholders from outside the family (such as company directors, senior managers, advisers or shareholders).<\/p>\n<p>This helps to achieve several crucial outcomes:<\/p>\n<p>\u2022 It gives everyone concerned a safe space to express their ambitions and desires for the business, the family and themselves.<\/p>\n<p>\u2022 It promotes an open discussion between family members about their visions of the future \u2013 which can lead to new ideas and opportunities, such as offering complementary services.<\/p>\n<p>\u2022 It allows us to test and \u2013 if necessary \u2013 challenge any assumptions from family members about what others might want.<\/p>\n<p>\u2022 It reveals any differences between the aims of the different generations involved.<\/p>\n<p>\u2022 It provides a base from which to seek any compromises that may be required, and establish a plan that everyone\u2019s happy with.<\/p>\n<p>\u2022 It identifies any skills gaps in younger family members who intend to take a role in the business, so that training can be arranged well in advance.<\/p>\n<p>Then once the plan for the future is agreed, we can support the business and the family with tax planning, advice on transactions and\/or exit, and training and development for the next generation. And we\u2019ll work with the family to regularly revisit the plan, and update it as needed.<\/p>\n<h2>More than a business plan<\/h2>\n<p>However, the real value of strategic succession planning goes far beyond such practicalities. Many of our <a href=\"https:\/\/www.goodmanjones.com\/who-we-help\/individuals-overview\/family-business-accounting\">family business<\/a> clients tell us that they get much more from the process than a robust plan.<\/p>\n<p>They often find that the strategic and commercial vision for the business is more unified, and more coherently defined. And they come away with improved and more open relationships; certainty over the future; and confidence that they\u2019ve made the right decisions for the business and their family.<\/p>\n<p>It\u2019s never too soon to plan for the future. Not to mention for the unexpected: illness, death, and life-stage changes such as the birth of children can suddenly change the equilibrium of a family firm.<\/p>\n<p>So think about investing in the long term now; there really is nothing more important for your business and your family.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; Taken together, some of the statistics from a recent Family Business Survey are particularly enlightening. The survey found that the overwhelming majority of family firms (85%) intend to remain family-owned. Yet while almost half (46%) are worried about the long-term sustainability of their company, only 38% have a succession plan in place. For family[&#8230;] <\/p>\n<div class=\"brown_button\"><a class=\"more-link\" href=\"https:\/\/www.goodmanjones.com\/blog\/the-true-value-of-strategic-succession-planning-for-families-in-business\/\">Read More<\/a><\/div>\n","protected":false},"author":43,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[598,753],"tags":[622,613,616,845],"class_list":["post-3304","post","type-post","status-publish","format-standard","hentry","category-family-business-accounting-tax-advice","category-leisure-and-hospitality","tag-family-business","tag-family-business-succession","tag-family-business-succession-planning","tag-succession"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The true value of strategic succession planning for families in business<\/title>\n<meta name=\"description\" content=\"For family businesses, long-term success is especially dependent on effective succession planning. 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It gets complicated by the personalities, relationships and emotions of the people involved.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.goodmanjones.com\/blog\/the-true-value-of-strategic-succession-planning-for-families-in-business\/\" \/>\n<meta property=\"og:site_name\" content=\"London Chartered Accountants Blog | Goodman Jones London Accountants\" \/>\n<meta property=\"article:published_time\" content=\"2019-06-10T10:26:38+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-06-10T10:32:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.goodmanjones.com\/blog\/wp-content\/uploads\/2019\/06\/iStock-171292717-300x200.jpg\" \/>\n<meta name=\"author\" content=\"Charlotte Jian - Partner\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@GoodmanJones\" \/>\n<meta name=\"twitter:site\" content=\"@GoodmanJones\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Charlotte Jian - Partner\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.goodmanjones.com\\\/blog\\\/the-true-value-of-strategic-succession-planning-for-families-in-business\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.goodmanjones.com\\\/blog\\\/the-true-value-of-strategic-succession-planning-for-families-in-business\\\/\"},\"author\":{\"name\":\"Charlotte Jian - Partner\",\"@id\":\"https:\\\/\\\/www.goodmanjones.com\\\/blog\\\/#\\\/schema\\\/person\\\/20c3b1464527f8b41b8910b56195f699\"},\"headline\":\"The true value of strategic succession planning for families in business\",\"datePublished\":\"2019-06-10T10:26:38+00:00\",\"dateModified\":\"2019-06-10T10:32:21+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.goodmanjones.com\\\/blog\\\/the-true-value-of-strategic-succession-planning-for-families-in-business\\\/\"},\"wordCount\":633,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.goodmanjones.com\\\/blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.goodmanjones.com\\\/blog\\\/the-true-value-of-strategic-succession-planning-for-families-in-business\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.goodmanjones.com\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/06\\\/iStock-171292717-300x200.jpg\",\"keywords\":[\"family business\",\"family business succession\",\"family business succession planning\",\"succession\"],\"articleSection\":[\"Family Businesses\",\"Leisure &amp; Hospitality\"],\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.goodmanjones.com\\\/blog\\\/the-true-value-of-strategic-succession-planning-for-families-in-business\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.goodmanjones.com\\\/blog\\\/the-true-value-of-strategic-succession-planning-for-families-in-business\\\/\",\"url\":\"https:\\\/\\\/www.goodmanjones.com\\\/blog\\\/the-true-value-of-strategic-succession-planning-for-families-in-business\\\/\",\"name\":\"The true value of strategic succession planning for families in business\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.goodmanjones.com\\\/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.goodmanjones.com\\\/blog\\\/the-true-value-of-strategic-succession-planning-for-families-in-business\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.goodmanjones.com\\\/blog\\\/the-true-value-of-strategic-succession-planning-for-families-in-business\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.goodmanjones.com\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/06\\\/iStock-171292717-300x200.jpg\",\"datePublished\":\"2019-06-10T10:26:38+00:00\",\"dateModified\":\"2019-06-10T10:32:21+00:00\",\"description\":\"For family businesses, long-term success is especially dependent on effective succession planning. 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