Success is in the details.  Before you begin, sit down and have a good, long conversation with your bank to make sure they have the in-house expertise and experience to guide you during this process and to help you ensure that the hand-over is harmonious and effective. You will find no better partner than a strong, competent financial institution that knows your needs and your business.

One in three family companies is handed on to the second generation. One in ten endures into the third generation. It is by no means certain that an entrepreneur’s life’s work is carried on by the family. Yet it is possible to entrust your most precious possession to a member of the family, without any problems – provided you plan things methodically.

You can eliminate unnecessary conflicts by taking a long, considered look at who is most suitable to take over from you in a few years’ time. Ideally, you will designate one successor, for the simple reason that too many cooks spoil broth.

Although your judgment may have been wise and insightful in the building of your enterprise, consult someone outside the company who knows what you do very well. Your successor will need more than a talent for leadership. A couple of years’ experience at another company can engender innovation and may raise your successor’s standing in the minds and hearts of your employees.

Be careful not to give close associates or other family members the impression that they didn’t measure up. You should give your successor time to learn your system and prove his or her competence. Your successor must be genuinely willing to take on the leadership role. He or she may have other career ambitions, but feel obliged to take the helm for your sake. Discuss this on a regular basis and assess their commitment and passion for the business.