Continuing on the theme of succession and business planning it is worth focusing on what the ambitions of the next generation might be. Often, this can be really helpful and a powerful way of setting out the agenda for change.
Recently in a family business meeting, a client with two daughters in the next generation, both actively involved in the ownership and management of the business whilst not being operationally in control, were very clear with their parents that when the parent’s generation came to retire, they would look to make changes to the business. They had a number of principles, particularly focused around the idea that neither wanted to live in the farmhouse or indeed live on the farm, and neither of them wanted the operational responsibility that their parents had. Both had good ideas for the future of the business and how the assets could be used, but tailoring these thoughts was quite instrumental in the discussion.
Interestingly, the business has diversified out of dairying several years ago into other aspects of agriculture and commercial use, so as a family they are used to change. Not all families are in this situation, often the current enterprises have been run for a number of generations, but future demands around aspirations of family, use of capital and splitting the business in the future will make things different.