Family business? Don’t be an ostrich
Building a family business can be a tremendously rewarding activity but sometimes the big questions are left unanswered for too long.Building a legacy for future generations is something to be immensely proud of but have you thought about your exit plan?
How do you get your money out if you need to and who will look after the business in your retirement? Kevin Carey, managing director at McDade Roberts Chartered Accountants has met countless business owners facing these questions so we interviewed him to find out about common family business issues.“Some say ‘don’t mix business with pleasure’ and others add in the words ‘or family’; but when done well, running a family business is such a great achievement. We deal with many family businesses and the satisfaction that they feel is obvious. It is the ultimate way to provide for your family, but it does come with potential pitfalls.
"Succession planning for example is an emotive subject. When will a key member of the family retire and who will get the business in a Will are both big questions that can be dealt with in an ostrich manner."It is a complex subject and there are many factors that need to be taken into account. Adding family into the equation makes it even more sensitive.
"Family business owners need to think about when they would like to retire and start planning for this as soon as possible. They need to address whether they have sufficient funds to retire and how they would like the legacy of their business managed in the future. Is there a suitable management team to take things forward? Each family member will have different skills so it is important to take an impartial view."Due to the complexity of succession planning and other retirement issues, McDade Roberts have developed a bespoke 50+ and Counting Service that will help business owners to plan for their retirement and maximise their assets along the way. "If any Lancashire Business View readers need advice on succession planning or general retirement strategies, call us – the first consultation is always free so there is nothing at all to lose.”