I have a family business. The first mistake involves the lack of planning or failure to plan. People have a tendency to put off or procrastinate planning because they think that nothing bad will happen to them or there will always be time.
Succession planning is a lifelong process that goes beyond routine estate planning.
It also involves the transfer of business philosophy and history, family and social values, and work and business ethics. Because family and business issues and relationships overlap, there needs to be a forum for healthy discussion and feedback. The second mistake is the failure by business owners to make an accurate assessment of their special situation. All of us have a tendency not to look objectively at ourselves or our businesses or family members. For example, you may not have children who are either qualified or desirous of maintaining the family business.