Inheriting a business is a responsibility and an opportunity. You might feel excited and overwhelmed. If that’s the case, it can be easy to miss important steps that set you up for success.
Here are five tips based on what we’ve seen work best for new owners looking to protect an important legacy and keep it growing.
1. Take a moment to reflect before you dive in
Even if you are deeply familiar with the family business, take the time to understand the history, mission, values, and moments that have shaped it with your new lens as owner.
You don’t have to keep doing things the same way out of obligation, but understanding where the business has been — and why — can help you decide where to go.
Tip: Set up conversations with employees, partners, or customers to share stories and ask questions. What is special about the company? Ask senior team members about the proudest moments and toughest challenges the business has faced and how they overcame them.
2. Get the whole picture
Beyond gathering stories, you need to survey the landscape and clearly understand the business’s current state.
Dig into details via other important documents including:
- Financial statements, tax returns, and bank records
- Assets, liabilities, and outstanding loans
- Accounts receivable and payable
- Existing contracts, partnerships, and vendor agreements
- Market position and competitors
Tip: A simple SWOT (strengths, weaknesses, opportunities, threats) analysis can be surprisingly useful as a way to see what you can and should prioritize smartly.
3. Convene the “Business Bench”
The right advisors can make all the difference. No one builds — or inherits — a business alone, so lean on the experts who know your business, their fields, and the region. Your bench can help you avoid costly mistakes from the get-go.
Connect with the team your predecessor used to learn from them and see about maintaining a working relationship.
Wondering who to call? Plan to connect with:
- A wealth advisor
- A tax attorney and CPA
- A business banker who knows your industry and market
- An appraiser (if needed for estate or tax purposes)
Tip: If the business already banks with Fremont Bank, you’re in luck — you’re not just inheriting accounts, you’re gaining a relationship. We know the Bay Area business landscape and would be proud to continue to serve as a trusted advisor as you plan for stability, growth, and long-term success. Want to learn more about a business bench?
4. Define your role and your vision
Consider how you want to be involved in the business, taking into account your other commitments, personal situations, and goals. Not every owner wants or is able to run daily operations. Some prefer more strategic roles and others somewhere in the middle.
Do the existing business and succession plans align with your values and goals? What would need to change for that to happen? Who can support you in the roles you aren’t excited to do?
Tip: Once you have a defined path forward, clearly and promptly communicate your vision to employees, partners, and clients. Openness during transition builds trust and keeps everyone on the same page.
5. Plan for the unexpected
The best time to prepare is before it happens. Market downturns, supply chain disruptions, sudden or unexpected expenses — one business truism is that every business will face challenges. Preparing now, even as you get up to speed, can save you from disaster later.
Start by:
- Keeping healthy cash reserves
- Maintaining strong vendor relationships
- Revisiting and updating insurance and contingency plans
- Knowing where important documents and resources are
- Understanding what levers to pull in an emergency
Tip: Believe it or not, there’s no time like the present to begin thinking about your own succession plan. If your predecessor put a strategic, intentional plan in place, you’re reaping those rewards. In the unlikely event it’s needed, the next in line will be as grateful.
Explore these resources to get started:
- How to Pick a Succession Plan for Your Small Business
- Build Your Business Succession Bench
- Modern Succession Planning
Ready to talk? Reach out. The right questions, preparation, and support will help you take the reins and lead with confidence and clarity. We’ve been a family-owned business alongside other Bay Area family businesses for generations. Whether it’s understanding the financial realities of the business or markets, accessing or setting up new accounts, or connecting with the right advisors, we’re here to help.
