To most people, their business is almost as precious to them as their own children. After all, they did build it up from scratch, and spend years of hard work and sacrifices into it. But everything has an expiry date; including your time as a working person. If you have already been thinking of retiring; then no doubt you have been worrying about what is going to happen to your business. Naturally, your children may come to your mind; especially if they are already a part of it. But what if they don’t work with you? What if it’s not your children that you have in mind? How do you make your decision?
Read ahead, and ask yourself these questions. Perhaps it may help to make your mind…
Is your business worth it?
Now, we know it’s your “pride and joy” …but you need to think about it logically. Has your business been seeing profits the last few years? Or do the losses overshadow the profits? Is it riddled with loans that need to be paid off or even land issues? Will inheriting this business cause them trouble? Will they benefit from it? Is it really worth all the work that involves this? If you are confused about the answers, we suggest getting the opinion of a commercial lawyer here…
Are you willing to do everything to see it done right?
Leaving a business to someone is a little different from leaving any other property; mainly because it involves others too. Be it your shareholders or workers; there are many people who are going to be affected by your decision. For this reason, it’s important that you make this decision (on who will the business belong to) before you have no say on it. The best way to get this done cleanly, is to make your will. For this, you can use the help of will writing lawyers…
Do they have what it takes to continue your business?
The primary reason for handing over a business to someone you trust, is to make sure that the business survives even when you’re not around to see it succeed. Is your child (or whoever inherits your business) equipped for this? Do they have the qualifications? Or the talent? Will they run it to the ground instead? There’s also the issue that whoever inherits the business, may not be living in the country at that moment. Then what happens? Can they learn to run a business long-distance?
How can you ensure their success?
If your children have trained under you, know how you run your business and your priorities, or even have the basic knowledge about running a business; you are in luck. Chances are that they might make mistakes, and run it more differently than how you do it; but at least it will eventually see success. If they don’t, then are you willing to find people to help them out? Lawyers, advices or even a committee board…they can all be useful to them.