Usually many traditional business owners start their business with the objective of having family members succeed and take control of the business. A family succession in Singapore does not happen in a short notice.It needs proper planning and well worked out strategy in dealing with family succession.
A family succession plan needs to take into account the goals and objectives of every family member. The family's goals and objectives become building blocks for the development of the succession plan for the family's business.Another factor that needs to be factored out is whether it is a family first business or a business first family. The answer would significantly impact the succession planning process.
Grooming the Successor
- An assessment of the prospective candidate must be done, to ensure the candidate is worthy enough.
- Once the right candidate is identified, training plan must be scheduled, to enable the successor to adapt and be ready to take over the business.
- The role and responsibility of the successor should be clearly defined.
- It is imperative to take into confidence the other family members and ensure any succession does not lead to conflicts within the family.
- The employees of the company must be briefed about the change in management, to ensure the smooth functioning of business.
- All legal issues like transfer of shares and appointment of director must be resolved before the succession.