Forbes Asia recently interviewed a fast food entrepreneur in Hong Kong who shared insights into business succession that are universally applicable. Although family businesses account for 80% of the global economy, next to divorce and bereavement, succession may carry the greater stress. The letting go process for an owner can be a real psychological barrier. In any plan, family must come first, then business.
The harmony, relationship quality and consensus is important for any person in planning a business succession. It is also important to consider a family assessment of ages, talents and wishes and this should be discussed in a transparent manner.
This could involve the creation of a family charter which contains defined policies and procedures like values and traditions. It should be kept in mind that psychologically, children may feel they can never step out of the parent’s shadow and may need to pursue their own dreams outside the business.