The American Bar Association reports that only 30 percent of family businesses successfully pass on to the second generation- were you counting on your loved ones picking up the business baton and running with it? The reality is that there are many challenges faced in the process of trying to figure out business succession. The best way to prepare for the future is to set in place a plan that either outlines the transition or makes clear the processes by which that decision emerges. 

If you’re considering selling, you need to think about how that might look for you and your company. Did you know that 75 percent of individuals who sold felt unhappy about it a year later? The root causes of this unhappiness include retirement plans falling short of expectations, the business legacy not being carried out, or disappointment over employees who lost their jobs in the transition. Make sure you carefully consider the return on investment from selling the company versus passing it on to someone else.

One of the most important things you can do now is to prepare your company to constantly be improving value. Think about the long term, and what structures would need to be in place for your company to succeed long after you’re gone. Consult with a business succession planning professional to get more details about how you can accomplish your goals.