EP056: What Families Get Wrong About Succession Planning

Dynasty Leadership Podcast

Steven Goodman is passionate about providing insightful solutions to the challenges of business succession, wealth preservation, and charitable planning. Steven is an accomplished CPA and has more than 30 years of experience in the industry. He is also the author of the book, Business Succession Planning and shares insights on the number one thing business owners get wrong when they pass down their life’s work to their children.

Key Takeaways:

[1:00] Around 93% of businesses Todd has helped had family in their business.

[1:30] If not structured properly, the family business can cause family members to tear each other apart.

[3:15] How did Steve get involved in succession planning?

[4:35] Steve shares a couple of examples of a typical family business structure.

[6:50] What are some of the issues a family business runs into when it comes to a succession plan?

[9:55] You want to give the business to one child who has taken interest in it, but what about his/her siblings?

[11:00] Founders/parents are afraid to communicate with their children about who is getting what because they don’t want to sour their relationship and potentially never see their grandchildren again.

[14:15] No plan ends up hurting your entire family vs. having a plan that only one or two family members like.

[18:55] If a son comes to Steven and says he owns 0% of the business but has been working in it, what are Steven’s next action steps?

[26:15] This scenario that Steven just walked us through is not uncommon.

[26:35] What should parents or children in the business be thinking about when it comes to succession planning?

[34:00] What are the negatives to creating a trust for the family?

[38:20] What are some of the common mistakes families make?

[42:10] How can someone get started in planning the future of their business?

Mentioned in This Episode:

Dynastylc.com

Email Todd: [e-mail]

Stevengoodman.biz

Shgplanning.com