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AG LEGACY Materials can help…
All posts by hewlett@uwyo.edu
WHY NO PLAN FOR SUCCESSION?
View a free recording on starting to plan for the succession of your family business…before it’s too late. See our free recording discussing how to get started on your succession plan at AGLEGACY.org.
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WHY DON’T FAMILY BUSINESSES PLAN FOR SUCCESSION?
HINDRANCES: Emotional attachment to land; No plans to retire; Ranching/Farming lifestyle; No retirement income
PERSPECTIVES: Proprietors; Conductors; Technicians
THE NEXT GENERATION: Sons / Daughters; In-Laws; Multi-family business; Non-family members
OTHER REASONS: Business issues and Succession planning issues
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Why Don’t Family Businesses Plan For Succession?
Are there control issues, fears of giving something up, or an inability to choose?
Are there emotional attachments, no plans for retirement, or farming lifestyle issues?
Does the founding generation have a proprietor, conductor, or technician perspective on the business?
What are the relationships of the next generation with the founders? Are they sons, daughters, in-laws, or non-family members?
Are there other business issues or succession planning issues that must be addressed to allow the planning process to proceed?
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What is an Advance Health Care Directive?
WHY GROW RELATIONSHIPS?
ADDRESSING FAMILY STRESS:
Culture of open communication
Allow sharing of ideas openly
Everyone wants to feel their opinions are heard and matter
Family meetings
Family business meetings
OTHER COPING SKILLS:
Making decisions democratically
Planning ahead for stressors
Reduce blame
More emphasis on “quality family time”
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WHY GROW RELATIONSHIPS?
The Why Build Relationships module covers challenges to managing relationships between generations in any family. See our recording outlining the how to build your relationships with next generation at AGLEGACY.org.
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WHY GROW RELATIONSHIPS?
* Who will take over as this generation continues to age?
* How we can build relationships between generations now?
* What makes farm and ranch families unique?
* What are the sources of stress among and between generations?
* How do we counter-act the stresses of modern life?
* What can we do to reduce the blaming in our communications?
FOR ANSWERS:
See our recent newsletter and online module materials covering: Why Grow Relationships with the Next Generation?
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After a Death: What Steps are Needed?
AG LEGACY Materials can help…
To learn more about AG LEGACY materials and for ideas on where to begin see AGLEGACY.org
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Do You Have a Succession Plan?
Most farmers and ranchers realize that a solid estate plan involves outside professionals. However, those professionals typically do not address day-to-day business management nor preparing the next generation to take over when the time comes.
Where Do We Begin?
One way to begin the process of transitioning is to start with three, basic questions, including: “Where are we?”, “Where do we want to go?”, and “How do we get there from here?”
Formalized Succession Plan
Following a formalized plan can help ensure that critical steps are not overlooked.
Succession Plan Components
The seven components of a complete plan include: 1. Executive Summary, 2. Business Overview, 3. Strategic Plan, 4. Retirement Plan, 5. Succession Planning Process, 6. Financial Plan, and 7. Contingency Plan.
Strategic Plan
A solid strategic plan will address: 1. Values, 2. Vision Statement, 3. Mission statement, 4. SWOB analysis, 5. Strategic goals, 6. Implementation plan, and 7. Monitoring plan.
Written Plan Segments
The written plan can be broken into seven components: 1. Establish a timeline, 2. Establish a planning team, 3. Select the appropriate successor(s), 4. Develop a written plan, 5. Communicate the plan, 6. Plan for retirement, and 7. Enjoy the years ahead.
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