Many of us work hard to build a business that can provide generational wealth to our kids. We grind day and night to establish a solid company, and then we work on increasing profits to provide for our family. But what happens when it comes time to retire? Do you just focus on running your business until you physically can’t, or should you think about handing it down to your children before that happens?

There are a couple of important things to keep in mind when thinking about handing over your business, and we’ll be exploring them in this article.

What do your kids want?

Before you go and make any decisions for your kids, you should ask them what they want. Perhaps they have different aspirations than you, or maybe they aren’t interested in running the family business. In a case like this, you should consider looking at other options. For instance, you could hand the business over to another family member, or you could wait a few years to see if they change their mind.

Alternatively, you could consider selling the business so that your children have enough money to start their own business or do whatever they want in life. You could also try to ensure that your family maintains the biggest share of the company so that you can keep earning money from it even if you’re no longer a major part of its operations.

In short, you have to consider what your kids want. Don’t feel bad or upset if they don’t want to take over the business from you.

Make sure the business is in a good state before you hand it over

There’s nothing worse than handing your business over to your kids when it’s in a bad situation. You don’t want to throw your problems onto your kids. Instead, you want to ensure a smooth transition so that they can learn the ropes slowly. Companies like Tivly become important for this, because you want to ensure that the business is insured and that the employees are happy. Similarly, you’ll want to make sure there are no outstanding debts and that the reputation is at an all-time high so that your kids don’t have trouble making a profit when the handover is complete.

Make sure you stay by their side during this transition. Mentor them, give them advice, and don’t hesitate to criticize their decisions if you think they’ve made a bad choice.

Think about your own plans too

What are your personal plans for when you retire and hand over the family business? It’s best to keep an eye on your kids so that they don’t make bad decisions for your company, but you also need to think about yourself.

For instance, you might have a partial retirement, or you might demote yourself to another position so that you can continue working alongside your kids. There are lots of options here, but the important thing is to not overlook your own aspirations and goals.