Consider an interim management team for your family business

What Is A Business Interim Management Team?

Founders of family businesses often consider establishing an interim management team to manage their family business if something unexpected happens and the founder is no longer able to manage the business.

If you are a business owner, you should consider establishing an interim management team even if you envisage that eventually the next generation in the family will take over the operation of your business.

Why You Should Consider An Interim Management Team For Your Family Business

While we hope to be able to choose our own retirement date, things don’t always go to plan. Unexpected things do happen and it is important as a business owner, that you are prepared.

An interim management team can be implemented to manage the business for a period of time until the next generation in your family is old enough or experienced enough to take over management of the business.

Timing The Transition From Interim Management To A Family Member

The specifics involving the timing of this transition depend on the circumstances of each case. The transition may take place at a fixed time, ie, when a succeeding family member turns a certain age.

Another option is that the transition be left to the discretion of the interim management team. If you choose this approach, you must be sure that the interim management team will act in the best interests of the family rather than their own self-interest.

A third option is to have a third party mediator appointed so decide when the next generation will take over management of the business. Thus, if a dispute about the timing of the succession occurs, an independent third d party will be able to make a rational decision about what is best for the business.

An interim management team might not be an appropriate option for every small business owner. Perhaps your heir is already trained and capable of taking over the business . However if this is not the case it is worth considering what would happen to your business if something unexpected happened to you. Don’t leave your life’s work vulnerable to failure simply because you didn’t take the time to make plans regarding your business.