Family Business & the Next Generation
Taking over is not the same as being handed the keys
The title may change in a day. The authority, the relationships and the way decisions are made change over years. This session is for people who are taking over, or are about to, and is built around the experience of people who have done it, including what the first year was like and what they had not expected.
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The successor inherits the business, and also everyone's expectations of it.
A successor is often expected to keep everything as it was, improve what is wrong and satisfy every relative and long-serving employee at the same time. The founder may remain closely involved. Siblings may feel the choice was unfair. Staff are waiting to see what changes.
A successor may not know exactly what they are taking on: the debts, the guarantees, the informal commitments and the relationships that depend on one person. It is better to learn these before accepting, and to be able to ask.
This session speaks to the successor's side with respect and takes no side between generations. It is not family counselling, legal advice or tax advice. It points to the questions to take to a lawyer and a chartered accountant, but does not answer them.
What successors think through
34 topics across 7 areas. Seven parts of taking over.
Before AcceptingSeeing what you are taking on.5
- The financial position: borrowing, guarantees, dues and receivables
- The informal commitments made by the founder
- Which customers, suppliers and staff depend on the founder personally
- How the business is owned and what you will actually own
- What the founder expects, in specific terms
Asking these is not distrust. It is the same information any new head of a business would need.
The Transition With the FounderSharing the space.5
A successor who is expected to take decisions, but to ask before taking them, is not in charge. It is better to say this early and agree on a way to move forward than to resent it later.
- A written, dated plan for what moves from them to you, and when
- What the founder remains involved in, and in what role
- How disagreements will be settled, and by whom
- How the founder will be informed, without being asked about everything
- What happens if the plan is not being followed
Leading Older People and RelativesAuthority without seniority.5
- Respecting experience while taking responsibility
- Deciding clearly and explaining why
- Handling a relative who does not accept your authority
- Keeping long-serving staff, and being fair to them
- Admitting mistakes quickly
Siblings and Other RelativesThe ones who are not taking over.5
- Explaining honestly how the decision was reached
- Keeping them informed to the extent they have a right to be
- Not treating their questions as hostile
- How they are treated in pay, ownership and decisions
- Staying a family after something has been decided
The First YearA realistic plan.5
- Spending time with every part of the business and its main relationships
- A short list of priorities rather than a transformation
- Keeping the things that make customers stay
- One or two visible improvements, agreed in advance
- A regular review with the founder and, where appropriate, advisers
How to earn authority, and how to change a business, are covered in their own sessions.
Money, Risk and ResponsibilityWhat lands on you.5
Rules on liability, guarantees and tax depend on how the business is structured. Take advice on your own position before signing anything.
- Personal liability, guarantees and bank relationships
- What you will be paid, and how that is set
- Separating your own finances from the business
- The cost of your family's expectations of income
- Who you can ask when you do not understand a financial point
Looking After YourselfTaking over can be lonely.4
- Finding peers who are doing the same
- A mentor who is not a relative
- Time away from the business that is not guilt-ridden
- Being clear on what you would do if it did not work
Successors' questions
- How do I know what I am agreeing to?
- What if my parent will not let go in practice?
- What if I disagree with a decision the founder made years ago?
- How do I deal with a cousin who wanted the role?
- What if I realise I did not want this?
What participants leave with
- A list of questions to ask before accepting
- A draft of how they might agree the transition with a founder
- A first-year plan with a short list of priorities
- A list of matters to take to a lawyer and a chartered accountant
- Contact with others in the same position
How the session runs
Successors who have taken over, or are in the middle of it, describe the first year: what they asked, what they had not expected and what they would do differently. Small-group discussion follows, separately from the founder generation, so that people can speak freely. Participants share only what they choose to share, and what is said in the room is not repeated outside it. Evenings or weekends, in person or online.
What your students leave with
- A list of what to ask and understand before accepting the role
- A way to agree the transition with the founder, including who still decides what
- A plan for the first year that is not only about proving yourself
- Ways to lead people who are older, more experienced or related to you
- A view of how to treat siblings and relatives who are not taking over
- A list of what to confirm with a lawyer and a chartered accountant
Scheduled sessions
Nothing scheduled yet
Sessions are arranged with a college once a date is agreed. Ask us and we will find the right person for it.
A student rather than a college? See what is coming up, or ask your placement team to host this.
Taking over goes better when the questions are asked early.
Tell us who your students are and what stage they are at. Sessions are free for participants.