Six Tips For Creating A Good Family Business Succession Plan
July 12, 2021 (0 comments)
San Jose, CA—Whether you’re a bathroom remodeling franchisee or a retail jeweler, if your business is family owned, the elements you need for a successful transition to the next generation are remarkably similar.
Related: Centurion Scottsdale Addresses “Generations” As Its Theme; Workshops Help With Planning Transitions
This article in Franchising.com offers six tips to help make that happen. It outlines the Wood family of Georgia, which became a Re-Bath franchisee in 2000. Re-bath provides easy-install bathtub remodeling solutions that don’t require extensive demolition. The product may be different, but the family business advice is universal.
Owner Mike Wood had nine children who all had worked in his prior construction company after school. By the time he opened the Re-Bath franchise, only two of his nine children wanted to work in the business. The two brothers, Jordan and Levi Wood, were eager to succeed and offer these tips—many of which will sound very familiar to retail jewelers:
- Do what you love, love what you do, and love who you do it with.
- Have a passion for the industry and a desire to learn more.
- Educate yourselves and seek professional support. The Woods hired a business planner to assist in the transition, who coached on how to get through the transformative period and read and researched what it takes to survive.
- Prioritize family relationships. It’s unwise to pass the business to siblings that don’t get along, said Levi in the article. Mike Wood taught his sons that on the job site they’re coworkers but at the end of the day they’re still family and that needs to be prioritized.
- Communicate openly and review plans regularly. Mike Wood always prioritized communication with his sons, explaining how everything worked. Transparency and communication remain at the forefront of the business today.
- Use your networks. While the Wood brothers turn to other franchisees for advice, the jewelry industry has its equivalent in the multiple retail organizations and business think-tanks where jewelers can turn to other storeowners for advice. Those organizations are invaluable.
Read the Wood brothers’ story here.
To read more about jewelry store transition planning and success stories, see below:
Marcus Lemonis, Master of ‘The Profit,’ Wows Centurion
Inside The Mind Of A Millennial Jeweler, Part One: Myths, Realities, And Marketing
The Minds Of Millennials, Part Two: Online Reviews, Selling Tips, And More
Storeowners Address Ways To Create Wealth And Avoid Inheritance Taxes In Transition