Things to Consider in Family Business Succession Planning

Serving clients throughout South Florida and southeast Michigan, Giannetti Contracting Corp. works in the sewer and water improvement sector of the construction industry. Founded in 1958, Giannetti Contracting is a company that is thriving in the third generation of family ownership. According to the Family Business Institute, only 12 percent of family businesses make it to that point, which is often due to poor succession planning. Here are some tips for family business owners who want to ensure future success.

1. Don’t rely on seniority among your children in decision-making. Instead, consider the attributes that each member of the family brings to the operation and assign roles accordingly.

2. Make your succession part of the company’s business plan, so you can start visualizing how you want the company to look upon your retirement. Consult with the family members who are involved in the company and gather advice from as many sources as possible, both internal and external.

3. Upon choosing a potential successor, focus on helping that person develop the skills needed to assume the role. Additional responsibility, rotation through a variety of jobs, and exposure to board members and other senior leaders can all help the future successor develop a greater understanding of all aspects of the business.