Just like a physical obstacle course, succession planning for family businesses is like an obstacle course. You have to find obstacles, then overcome them... fly over them, dig under them, outflank them to move around them. And it is often ones that you didn't see that cause you biggest problems!

Every family and family business situation is different, so there is no one "master map" because there are no fixed or defined obstructions. However, certain things do tend to appear frequently, so we've compiled our checklist of frequent obstacles. If you look for and deal with these, you will have greatly improved your chances for successful succession.

A note about terminology: we have used "Dad" to identify a founder or retiring owner.

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Important Note About This Checklist! The goal is not to determine whether particular obstacles are true or not...

...If point is perceived to be true or present, then it IS an obstacle that has to be dealt with.

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Founder or Retiring Owner

First, and most importantly, Dad must believe his financial security is assured. Without this perception, there is a major obstacle and probability of Dad leaving business "voluntarily" is significantly reduced. What is Dad going to do with time and energy he had committed to business? Obviously Dad must be able to envision a positive, productive and meaningful existence away from business. Without having something to "move to" Dad likely will not "move from"... Will transition diminish Dad's self- esteem and negatively impact his self- concept? Very often in our society, "who we are" is generally described by "what we do". With regard to kids, most perplexing problem for Dad is how can he be both FAIR and EQUAL.

Adam is an entrepreneur and as part of his integrity and authenticity he patronizes only locally-owned stores. As a business owner, he also admires name of this store so much, he tells me about it every time.

I must admit, it’s stuck with me as well. That’s exactly and all I need to know about my doughnut store and big sign popping out as I go by on highway has been helpful. (Like I need help finding doughnuts.)

Now, what’s a “corporate doughnut”? That would be a doughnut store that’s a franchise, ultimately owned by a corporation. And what do you get when you get a corporate doughnut?

Exactly same thing every time. It’s highly predictable. In a Mississippi bayou or downtown Manhattan, you can pull into a McDonalds and know what you’ll get, which in some cases is definitely a relief.

And which are YOU – a corporate doughnut or a 5 AM doughnut?