Family succession is a difficult situation to fairly conquer. The fear of the unknown or just not knowing how to, may be putting farmers off from starting. However, nothing was ever achieved without starting. There are many different ways to approach the subject but not all of these will be effective. We have developed a process based around strong communication and letting everyone have their say. Having an advisor to lead the family through the process can help remove the fear of starting and can filter and manage any unrealistic viewpoints. These are the four pillars upon which to build a plan:
BUILD A STRONG
This may sound obvious but we want to ensure the existing business is not only strong enough to support the current owners, but will also be sustainable when it is passed on to future generations.
ESTABLISH OPEN COMMUNICATION
Communication is the heart of any financial plan. The reason for this is to uncover the underlying needs of the entire family, assumptions lead to misunderstandings and misunderstandings leads to conflict.
There is a difference between being fair and being equal. Just because a succession plan is equal does not necessarily mean it is fair. The basis to any successful succession plan is built on the foundation that is fair, and is seen as fair to all parties.
UNDERSTAND OWNERSHIP VS. CONTROL
Ownership without control and control without ownership can quickly deteriorate a family relationship. Balance and expectations need to be carefully managed and the only way to do this is through strong communication and putting the plan into action.