Running a family business is more than a job. It takes a huge amount of time, energy, money and commitment to keep the business afloat. There’s a lot of people to consider and work to be done. From accounts to admin, there are no end of tasks.

It’s easy, then, for ‘talking about the future’ to fall to the bottom of a long to-do list. However, if that’s where it stays, there might not be a business to pass onto your loved ones, or whoever you think is best placed to run it.

If you don’t have a will or succession plan that details what will happen to the business/who will run and own the business after your death, there could be conflict and the business may not pass to the people you would like it to.

One in four of the family business owners in the UK that STEP surveyed shared that their biggest fear about not having a succession plan was that their business would close.

The good news is that there some simple steps you can take to plan in place. We recommend that you:

Start the conversation

1. Start small: you don’t need to decide everything at once. Just letting your loved ones know you want to discuss the future of the business is a great place to start.

2. Keep it ordinary: have the conversation over a meal, on a walk or a time when you have time to have an open chat. It doesn’t need to be formal.

3. Be direct: none of us can escape the inevitable, but by talking to our loved ones about our wishes, we can save them a lot of heartache and expense when it comes. Family business owners that have done this say that it has benefited the business to have had done so.

Once you’ve got started the conversation, you can:

Focus on what matters

1. Focus on the positives: each generation can bring different knowledge, such as an understanding of AI. It won’t protect younger generations to leave them without the knowledge or skills to continue the business. If everyone would like the business to stay in the family, talking is the place to start.

2. Focus on your values: what does your family business stand for? And will the wealth your family business creates be deployed in a way that you agree with? A family constitution is a great way to get everything in writing. Read STEP’s guide to setting up a family constitution.

3. Focus on the worst-case scenario: if the person running your business weren’t able to do it, who would? Having a plan ready should the worst happen will help the business to survive. Read STEP’s guide to preparing your family ‘business for the unexpected’.

Plan and Review

1. If you need to get a will, it might not take as long as you think. If you are based in England or Wales, our handy guide to getting starting with a will can help.

2. If you have a will, make sure it is up-to-date. Review it every five years, particularly when you have a change of circumstances, such as a birth, divorce or a new marriage.

3. Who would you want to run the business if you weren’t able to? Talking to your loved ones and having a succession plan that sets out your wishes will help the business can thrive, no matter what.

4. Talk to an expert: a STEP member who specialises in working with family businesses can give you the support you need to put your will and succession plan in place. They can also advise on trusts that might be appropriate for the business and Lasting Powers of Attorney. You can find out more about the different kinds of trusts here.

STEP has members who can advise you on how best to plan as a family business owner. Use our Find a TEP service to find an expert near you.