{"id":560615,"date":"2019-05-04T03:01:32","date_gmt":"2019-05-04T07:01:32","guid":{"rendered":"https:\/\/vrbbd.wpengine.com\/vrbbgreenbay\/a-must-read-article-on-having-children-take-over-the-family-business\/"},"modified":"2022-01-31T12:42:42","modified_gmt":"2022-01-31T17:42:42","slug":"a-must-read-article-on-having-children-take-over-the-family-business","status":"publish","type":"post","link":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/a-must-read-article-on-having-children-take-over-the-family-business\/","title":{"rendered":"A Must Read Article on Having Children Take Over the Family Business"},"content":{"rendered":"
\"\"<\/p>\n

In a recent Divestopedia article entitled, \u201cKids Take Over the Business? 8 Things to Consider<\/a>,\u201d author Josh Patrick examines what every business owner should know about having their children take over their business. \u00a0He points out that there are no modern and accurate numbers on what percentage of businesses will be taken over by the children of their owners. \u00a0But clearly the number is substantial.<\/p>\n

Patrick emphasizes as point number one that allowing a child to take over a business right after finishing his or her education could be a huge mistake. \u00a0After all, how can a parent be sure that a child can handle operating the business without some proven experience under his or her belt?<\/p>\n

Point number two is that businesses frequently create jobs for the children of owners. \u00a0The flaw in this logic is pretty easy to see. This job, regardless of its responsibilities, isn\u2019t in fact a real job. \u00a0Senior decision-making roles should be earned and not handed out as a birthright. The end result of this approach could create a range of diverse problems.<\/p>\n

The third point Patrick addresses is that pay should be competitive and fair when having children take over a business. \u00a0Quite often, the pay is either far too high or far too low. This factor in and of itself is likely to lead to yet more problems.<\/p>\n

Business growth must always be kept in mind. \u00a0When having your children take over a business, it is essential that they have the ability to not just maintain the business but grow it as well. \u00a0If they can\u2019t handle the job then, as Patrick highlights, you are not doing them any favors. Perhaps it is time to sell.<\/p>\n

Another issue Patrick covers is whether or not children should own stock. \u00a0If there are several children involved, then he feels it is important that all children own stock. \u00a0Otherwise, some children will feel invested in the business and others will not. In turn, this issue can become a significant problem once you, as the business owner, either retire or pass away.<\/p>\n

In his sixth point, Patrick recommends that a business should only be sold to children and not given outright. \u00a0If a child is simply given a business, then that business may not have any perceived value. Additionally, if a child or children buy the business, then estate planning becomes much more straightforward.<\/p>\n

In point seven, Patrick astutely recommends that once a parent has sold their business to their child, the parent must \u201clet go.\u201d \u00a0At some point, you will have to retire. Regardless of the outcome, you\u2019ll ultimately have to step back and let your children take charge.<\/p>\n

Finally, it is important to remember that your children will change how things are done. \u00a0This fact is simply unavoidable and should be embraced.<\/p>\n

Working with an experienced business broker is a great way to ensure that selling a business to your child or children is a successful venture. \u00a0The experience that a business broker can bring to this kind of business transfer is quite invaluable.<\/p>\n

Copyright: Business Brokerage Press, Inc.<\/a><\/p>\n

World Image\/BigStock.com<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

In a recent Divestopedia article entitled, \u201cKids Take Over the Business? 8 Things to Consider,\u201d author Josh Patrick examines what every business owner should know about having their children take over their business. \u00a0He points out that there are no modern and accurate numbers on what percentage of businesses will be taken over by the […]<\/p>\n","protected":false},"author":2,"featured_media":560617,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3,2],"tags":[],"class_list":["post-560615","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-seller-articles","category-selling-a-business"],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":6}},"_links":{"self":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/560615","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/comments?post=560615"}],"version-history":[{"count":0,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/560615\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/media\/560617"}],"wp:attachment":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/media?parent=560615"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/categories?post=560615"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/tags?post=560615"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}