If you own a business and you have children, odds are that you have given some thought to passing that business on to your kids. I am here to say that it could be a bad idea. One of the reasons is that your kids don’t have any money, so it is unlikely that your kids purchasing of your business is going to fund your retirement.
However, funding is not what I want to write about today. Today’s topic is the conversation you should be having to determine if any of your children really are interested in your business. There is an entire chapter in my forthcoming book on succession titled “Not Your Kids Passion” because this is such a common problem.
Sometimes the kids are reluctant to say they are not interested. Sometimes the parents make an assumption and don’t ask the kids.
This conversation is difficult for people who love each other. Your kids don’t want to hurt your feelings and you don’t want your kids running your business only out of duty. When you have the conversation it should be made clear that everyone has permission to speak frankly.
Don’t make assumptions about your kids being your succession plan. Best to have the conversation.