Double Eagle Financial Services
Family succession planning – Building a Legacy
Building a strong family brand is not a quick public relations exercise. It’s a big strategic move and it takes time. The potential rewards will last generations. Positioning a company as a family business has an impact on all three dimensions of such firms – family, ownership, and business. A powerful brand strengthens the identity of a family owned business and reflects a vision to grow substantially in the future – more family firms could take advantage of this potential.
For many families, the business, farm, or ranch doesn’t get the benefit of longevity since family relationships get in the way. Planning and working out concerns for family members takes time. One needs a professional who has the ability to see the whole picture and bring together each part in a synergistic way. A team effort is most important in this process.
To build a successful family business, planning needs to start early, since on transition, one cannot run a business like a personal account. Maximizing business procedures and financial processes is critical to ensuring the business continues to thrive into future years.
Family values are critical to the legacy process. Families often haven’t passed on concerns to the succeeding generations to ensure working together in the future. Annual family vacations are a way to pass on these values in an non-confrontational way with senior members guiding the next generations. There are concerns of treating each child equally, while not understanding each one’s strengths and weakness. A fairness concept can go along way to making each sibling relate to the family business whether or not they continue in the business or get a cash portion of the estate.