The Next Generation (NxG) needs to capture the wealth of knowledge that the older generation has within them. How do they actually go about capturing this knowledge?

What was the vision that created this family business? What values and code of ethics brought us to where we are today? Is this family business a legacy or is it to be sold somewhere down the line?

The older generation needs to create an "Ethical Will"

When preparing the NxG owners, the older generation needs to give them extensive exposure and experience to the business they will one day own.

Development and Mentorship programs can be used by the older generation to instill the values and vision of the company as they would like to see it in perpetuity.

One of the questions the NXG owner needs to ask is: "Am I an entrepreneur, a manager and/or steward of the business or just there because I am entitled to be there? How do I define myself?"

The NxG owner should be spending about 20% of their time outside of the normal responsibilities of their job in developing their leadership skills by:

• Visiting important customers and suppliers
• Observing Board of Directors meetings
• Taking Leadership classes and/or seminars
• Attending and perhaps even participating in strategic planning sessions
• Educating themselves in the understanding and reading of financial statements

Succession is a reality and the successor must understand the responsibilities that go along with succession. But, the older generation must also not set-up their successor for failure!

10 Questions for the Next Generation...

1. Is it your intention to enter the family firm?
2. Why do you want to join the firm?
3. Do you have necessary experience and education?
4. What are your strengths and skills that can aid the company?
5. Are you willing to make sacrifices for the firm, such as low pay or long hours when necessary?
6. What is your long- term vision for the company?
7. Are your values in line with the founder's values and the company's stated mission?
8. Have you gained any outside work experience?
9. Do you feel pressured to be the successor? Is it your choice?
10. Do you believe the business should stay in the family?