Inheriting your family business is a great honor. Maybe your parents walked you through the business processes and prepared you for this momentous task. Or, maybe they remained tight-lipped about who would be in charge for decades. Whatever the case, this Delaware business is now yours to run.
This may feel overwhelming even for people who felt prepared. Great responsibility in the face of grief can become difficult to shoulder. If you feel unwilling to take on the task of being a business owner, this may complicate things further. Here are three tips from Fifth Third Bank.
1. Meet the stakeholders
Before you make any decisions about the business, it is important to have a chat with everyone who has a stake in it. This includes not just the investors and partners, but also the employees, bankers and accountants. You need these people to cooperate with you as you move forward.
2. Revise the business plan
Every business should have a written plan in place. It sets the foundation for managers to lead and for other stakeholders to make strategic decisions. If there is no business plan in place, it may be time to create one. If you decide to sell, this may also provide the break-it-or-make it figures you need.
3. Decide if you plan to keep it
Not everyone has the will or the skills to run a business. A doting parent may feel otherwise, but you know yourself better than anyone else. In this instance, selling may work well for you. Another option may be to remain the owner but let a longstanding employee manage it, which is why it is so important to develop a relationship with them in the early stages.
Inheriting a business can put the weight of the family fortune on your shoulders. In some unfortunate instances, what you might inherit is the family debt. Think carefully and proceed under the advice of unbiased professionals.
This article shares tips from Fifty Third Bank on how to handle a business inheritance. It is purely informative and should not be used as a replacement for professional legal advice.