rural business succession planning strengthening rural families education series gregg hadley, phd...
TRANSCRIPT
![Page 1: Rural Business Succession Planning Strengthening Rural Families Education Series Gregg Hadley, PhD Assistant Director – Agriculture, Natural Resources](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649d705503460f94a52fc3/html5/thumbnails/1.jpg)
Rural Business Succession Planning
Strengthening Rural Families Education SeriesGregg Hadley, PhD
Assistant Director – Agriculture, Natural Resources and Community DevelopmentK-State Research and Extension
[email protected](785) 532-5838
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Our Goal
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An Ongoing Family Business & A Happy Family
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Grandma and Grandpa(The Past Generation)
Mom and Dad(The Current Generation)
Farming Brother and Sister (The Next Generation)
Non-Farming Brother and Sister
The Brothers’ and Sisters’Spouses
The Brothers’ and Sisters’ Kids (The Future)
“It’s Complicated!”
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Succession Planning Steps
• Who should be involved?• How will we work together to develop a
succession plan?• What are our vision, mission and long term goals
for our family business?• What does this mean for the business?• Where do I fit in?• Will this work?• How do we transfer the business assets?
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Preparing to Plan
• Who should be involved?• How will we work together to develop a
succession plan?
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Developing the Plan
• What are our vision, mission and long term goals for our family business?
• What does this mean for the business?• Where do I fit in?• Will this work?• How do we transfer the business assets?
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Succession Planning Steps
• Who should be involved?• How will we work together to develop a succession plan?• What are our vision, mission and long term goals?• What does this mean for the business?• Where do I fit in?• Will this work?• How do we transfer the business assets?
![Page 9: Rural Business Succession Planning Strengthening Rural Families Education Series Gregg Hadley, PhD Assistant Director – Agriculture, Natural Resources](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649d705503460f94a52fc3/html5/thumbnails/9.jpg)
Who’s At The Table?
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Grandma and Grandpa(The Past Generation)
Mom and Dad(The Current Generation)
Farming Brother and Sister (The Next Generation)
Non-Farming Brother and Sister
The Brothers’ and Sisters’Spouses
The Brothers’ and Sisters’ Kids (The Future)
![Page 11: Rural Business Succession Planning Strengthening Rural Families Education Series Gregg Hadley, PhD Assistant Director – Agriculture, Natural Resources](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649d705503460f94a52fc3/html5/thumbnails/11.jpg)
Other People• Communication specialists• Conflict management experts• Counselors • Mediators• Financial analysts• Lawyers• Succession planning facilitator
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Succession Planning Steps
• Who should be involved?
• How will we work together to develop a succession plan?
• What are our vision, mission and long term goals for our family business?
• What does this mean for the business?• Where do I fit in?• Will this work?• How do we transfer the business assets?
![Page 13: Rural Business Succession Planning Strengthening Rural Families Education Series Gregg Hadley, PhD Assistant Director – Agriculture, Natural Resources](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649d705503460f94a52fc3/html5/thumbnails/13.jpg)
Planning Together
• What is the purpose of our succession planning?
• What obstacles are in our way?• How will we work together while planning?
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Succession Planning Team Agreement Document
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An Agreement That States…
• Our shared values• Our planning vision• Our planning mission• Our planning goals• Our planning obstacles• Our planning rules
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Shared Values
Accountability Commitment
Respect
Fun Empowerment Integrity
Passion
Balance Quality Collaboration
Diversity
InnovationConsistency
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Planning Vision
At then end of our planning, we want to see…
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Planning Mission
• A short description about how your family will achieve the shared vision“We will achieve our vision by…”
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Planning Goals
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Planning Obstacles
PetPeeves
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Planning Rules
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Succession Planning Steps
• Who should be involved?• How will we work together to develop a succession plan?
• What are our vision, mission and long term goals for our family business?
• What does this mean for the business?• Where do I fit in?• Will this work?• How do we transfer the business assets?
![Page 23: Rural Business Succession Planning Strengthening Rural Families Education Series Gregg Hadley, PhD Assistant Director – Agriculture, Natural Resources](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649d705503460f94a52fc3/html5/thumbnails/23.jpg)
Family Business Strategic Planning
Values
Vision
Mission
Mission
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Succession Planning Steps
• Who should be involved?• How will we work together to develop a succession plan?• What are our vision, mission and long term goals for our
family business?
• What does this mean for the business?• Where do I fit in?• Will this work?• How do we transfer the business assets?
![Page 25: Rural Business Succession Planning Strengthening Rural Families Education Series Gregg Hadley, PhD Assistant Director – Agriculture, Natural Resources](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649d705503460f94a52fc3/html5/thumbnails/25.jpg)
Strategic Plan Implementation
• Increasing the pie– Take advantage of under
utilized capacity?– Improve efficiency?– Expand present
operations?– Add on new operations?
• How?• When?
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Write It Down
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Succession Planning Steps
• Who should be involved?• How will we work together to develop a succession plan?• What are our vision, mission and long term goals for our
family business?• What does this mean for the business?
• Where do I fit in?• Will this work?• How do we transfer the business assets?
![Page 28: Rural Business Succession Planning Strengthening Rural Families Education Series Gregg Hadley, PhD Assistant Director – Agriculture, Natural Resources](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649d705503460f94a52fc3/html5/thumbnails/28.jpg)
Where Do I Fit In?
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Who Does What?
• Inventory the work, management and leadership needs of the future family business
• Inventory the knowledge, skills, likes and dislikes of the family members
• Who would be best/worst for what?
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Some Even Suggest…
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Work, Management and Leadership Responsibilities
• Important to discuss the work, management and leadership roles– Who’s the boss?– How will this change
over time?– When will this change
over time?
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Write It Down
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Succession Planning Steps
• Who should be involved?• How will we work together to develop a succession plan?• What are our vision, mission and long term goals for our
family business?• What does this mean for the business?• Where do I fit in?
• Will this work?• How do we transfer the business assets?
![Page 34: Rural Business Succession Planning Strengthening Rural Families Education Series Gregg Hadley, PhD Assistant Director – Agriculture, Natural Resources](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649d705503460f94a52fc3/html5/thumbnails/34.jpg)
Assessing the Plan
• Take your family business plan to experts for feedback– Operations specialists– Management specialists– Risk specialists– Financial analysts
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Succession Planning Steps
• Who should be involved?• How will we work together to develop a succession plan?• What are our vision, mission and long term goals for our
family business?• What does this mean for the business?• Where do I fit in?• Will this work?
• How do we transfer the business assets?
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Estate Plan
• Once you have your family business plan analyzed– Show it to your estate
planning attorney – Request that an estate
plan be developed that complements your family business plan
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Things Just Don’t End With The Business and Estate Plan
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Questions?