If you own a family business, retirement is not simply a matter of deciding not to go into the office anymore. You have some critical questions to answer like...
"What happens to the business when you are no longer running it?" and
"Will you have enough money to retire?"
The family dynamic also complicates the whole transition because of the relationships and emotions involved. Most people are not comfortable discussing topics such as aging, death, and financial affairs, even with loved ones.
Comfortable or not, succession planning should be a top priority for any family business considering that more than seven out of ten family-owned businesses fail to survive the transition from founder to second generation, typically falling prey to either estate taxes, family discord, or both.
Developing and implementing a well-designed succession plan is essential to the survival of a family business from one generation to the next and for many more to come.