Keeping the business of forefathers alive requires sheer will and dedication. The idea of the family working together to earn livelihood sounds ideal, though it is usually accompanied with loads of family drama. Sibling rivalries, conflicts arising from a generation gap, and contradicting opinions quickly take a toll on the enterprise. The founder of a successful organization may expect descendants to follow in their footsteps and keep the legacy alive, but that seldom happens. Only about 30% businesses last by the second generation, whereas less than 15% make it to the third.

Your business is your asset, which makes it an important part of estate planning. The primary reason for failing family businesses is the growth in numbers. If each generation consisted of one heir, then the transition would be a lot simpler. A founder who has four children may later have 16 grandchildren, and the company might lack the capacity to accommodate everyone sharing the same bloodline. At the end of the day, everyone wants a chunk of the generated wealth, regardless of their contribution. You might recognize the heir who has what it takes to handle the family business, but cutting off the rest is easier said than done.

Even if your business is expansive enough to employ a growing family, not every member is going to be capable of shouldering the responsibilities. Sometimes the number of children in line of inheritance is not even an issue. Whether you are the parent to single child or three, the longevity of your business is not guaranteed. Each of your successors may have entirely different passions, ideals, and motivations. They may not harbor the slightest interest in your business, and occasionally, neither in your money. All your heirs may have careers planned out or hope to establish a separate business that has nothing to do with yours.

Forcing a business onto the next generation doesn’t pan out well. Despite sharing the same genes, your children may not have much in common with you. Lack of loyalty and understanding towards the business becomes the company’s downfall. Sometimes, the problem arises from choosing the wrong heir to take the reins. Many business owners like any other parents have a favorite child. The discrimination could be based on gender, age, academic performance, physical attributes or social etiquette. One shall naturally be inclined to transfer the power of attorneys to the serious and responsible child, rather than the eccentric and unpredictable one.

The best way to figure out the appropriate leader in the next generation is by talking to them. Conventional conversations can help you understand who your children are and what they want. Even if none of them are ready or willing to take on your role, they could benefit the family business in other ways. Family brainstorming sessions can help think out of the box and unveil new possibilities. Bear in mind that market trends and consumer patterns change over time. If your heirs want to make amendments to existing operations and standards, hear them out.

You may not appreciate ideas that challenge your traditional principles or work ethic, but it could be for the best. The business can be revolutionized whilst preserving its core values. However, if you are certain that none of your descendants will be able to do justice to the family business, consider selling it to a third party. The executor of your will or trust can take care of the sale after your death and distribute the money among beneficiaries. Whatever you decide, Estate Planning Attorney in Pensacola, FL, can handle all the necessary paperwork for you and provide valuable advice. A comprehensive estate plan addressing the family business will make life easier for your loved ones and allow you to rest in peace.