Keeping The Business In The Family
The majority of trucking companies are family businesses, but fleet management consultants say a growing number of these carriers are being sold to someone on the outside rather than passed on. One reason, of course, is that second-generation family members aren't interested in trucking. But in many cases, it's lack of planning.
"Transferring Management in the Family-Owned Business," a publication available at no charge from the U.S. Small Business Administration (www.sba.gov/library) outlines four plans necessary for a smooth transition.
• A strategic plan for the business charts development for the future. It identifies strengths and weaknesses, assesses internal operations and looks at external forces. Family issues should also be considered, such as long-term financial and professional goals of family members. Involving family members in strategic planning allows all generations to chart a course for the firm and ensures that everyone has a clear picture of the company's future.
• A family strategic plan establishes policies for the family's role in the business. It should include a mission statement that spells out the family's values and basic policies of the business. It should address criteria for working in the business and other issues important to the family.
• A succession plan outlines how succession will occur and how to know when the successor is ready. Potential ill feelings can be avoided if the plan has a selection model. For instance, the plan might have objectives and goals for the future president or CEO, including a job description and required training and experience.
• An estate plan is necessary to ensure the bulk of the assets go to the family and not to taxes. Wills, trusts and stock are common transfer techniques. Estate planning should be done with the help of a qualified attorney or accountant.
