Do you want your business to survive and thrive in the years to come? Do you know the one big reason for the disappearance of family-owned businesses? It’s the succession issue.

Sometimes, the next generation is uninterested or unskilled in handling the business (succession to a capable non-family member is a possible option).

However, many a times, although the next generation is keen on taking over the reins, differences in opinions and the “generation gap” makes this difficult. In such cases, succession often takes place unplanned and abruptly (often when the previous leader quits due to ill health).

Research shows that an unplanned succession is more likely to lead to loss of credibility among customers and confusion among employees, resulting in reduced revenue.

To step down is not easy, especially for the founder of the company. But, for the business’s greater good, a timely succession is a must.  It gives time to clients as well as employees to accept the new leader. More importantly, the previous leader is always around to guide the new leader and blend his distinct ways into the new working ways.

Undoubtedly, having a good succession plan should be high priority for every business owner who is 60+, especially if you have identified your successor.