A few years ago, we worked with a business owner whose dream was to provide jobs for every member of his extended family.
Children, spouse, siblings, cousins… one by one they all joined the payroll – despite being hopelessly under-qualified.
At first, it seemed like a noble gesture. But as you can imagine, it didn’t take long for problems to creep in. The business struggled under the weight of poor decisions and weak performance.
Eventually, it collapsed.
The cruel irony? In trying to give his family security, he ended up putting every single one of them out of work.
I’ve been talking recently about exit planning – and the importance of knowing what will happen to your business once you’re ready to step away.
In my last email, we explored how tricky it can get when you have a business partner with a competing vision.
But even that can look straightforward compared to handing a business over to family. Objective decisions become clouded, emotions take the driving seat, and suddenly your choices at work have consequences around the dinner table.
That’s why, when family is involved, exit planning isn’t just important – it’s essential.
Whether your goal is to retire and pass the reins to your relatives, or to sell up and protect everyone’s future, the stakes are that much higher.
And it means asking yourself some hard questions, like:
- Are my relatives genuinely qualified to run the business once I step away?
- If they’re not, and I still want to leave it to them, how can I ensure they get the right training and mentoring?
- Do my relatives even want to take over the business, or am I imposing my dream on them?
- What happens if one family member is capable, but others aren’t – how do I handle succession without creating conflict?
- If I decide to sell instead of passing it down, how do I balance my family’s financial needs with my own retirement goals?
These aren’t easy conversations to have – either with yourself or with your family.
But thinking them through now can save a lot of heartache later, and ensure that when the time comes to exit, you’re protecting both your business and the people you love.
That’s where we come in.
At Insight Associates, we’re not exit planners — we’re your outsourced finance department.
But exit planning is, at its heart, a financial issue. Whether you’ll be able to retire comfortably… whether your business is strong enough to sell… whether you can afford to pass it on to family — all of it depends on the financial health of your company, and the plan you put in place now.
For many of our clients, family dynamics are part of the picture.
Having an objective third party at the table can make all the difference.
We’ll help you ask the right questions, challenge your assumptions, and work through the numbers until you have a plan that not only keeps the peace at home — but also makes financial sense for the business and for your future.
If you’d like to explore how we can help you prepare for your own exit — on your terms — let’s talk.
Simply email garry@insightassociates.co.uk or call us on 01279 647 447 to set up a no-obligation consultation with myself or with one of our specialists.
Warmly,
Garry
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