Is this one of your concerns?
A lot of TaoKes like you and me dream of building their Seng Di from the ground up and exiting with a strong and successful legacy after handing over the business to their kids.
Pero, may mga cases na business succession fails because the children may not want to carry on the tradition—kahit dugo at pawis ang nilaan ng parents para dito.
It can be a tough situation to accept…
More and more are facing the reality that their kids are not interested in taking the family Seng Di.
Iba’t iba ang reason.
It could be that they’ve found their true calling elsewhere…
Or decided to pursue a totally different career path like being a professional doctor or engineer…
And sometimes, ayaw lang nila matawag na COO, Child of Owner.
But no matter the reason, some statistics show that only around 30 percent of businesses make it to the second generation, and around 13 percent survive to the third generation.
On top of that, many instances din na yung 2nd and 3rd generation madalas na hindi nagkakasundo because of different points of view and also wanting na makalamang over the other, resulting to heirs not being happy with their situation.
Regardless of whether the statistics are true or not, we should always prepare.
So, if you’re wondering what to do when your child doesn’t want to carry on the tradition, don’t worry.
I have five strategies for you to navigate business succession planning.
First, start planning ahead. Habang maaga, talk to your kids. Ask them if they are interested to take over the business.
Don’t wait until you are about to retire, it’s too late! Have open and honest conversations with your kid early on.
Train them if they’re interested, and always have a contingency plan if ayaw nila.
Second, assess your options. Take a look at your financial situation and consider other exit strategies.
Can you afford to retire without selling the business, or will you need to make a profit from the sale?
Third, check who else in the family can take over.
Expand your horizons beyond the immediate family. Nephews, nieces, and cousins could be successors too.
They can even bring fresh perspectives to the table.
Fourth, put emotions aside. While passion drives growth, it can also cloud judgment.
Treat the decision like hiring an employee. Think about what’s best for the business.
Lastly, get professional advice. Sometimes, an outsider’s perspective can be helpful. In fact, a professional Financial Advisor’s role is to effectively manage the financial aspects of succession planning.
Financial advisors can ensure a smoother transition and protect their clients’ best interests.
If you’re in this situation, I can offer to help you with your business succession planning, protecting your assets and legacy—no matter what path you choose.
Remember, you’re not alone in this journey.
Many TaoKes have faced similar challenges, and with the right approach and support, you can find the best solution for your future and still achieve AngPao for Life for you and your kids.