Business transitions are common amongst family enterprises, viewed as an accepted circle of life where the rising generation takes over from the previous one.

Preparing the next generation to take over a family business is not necessarily a difficult process. However, for it to be successful, there are some key issues to be considered. Before asking if children are prepared to take over the family business and wealth, it is worth asking if they actually want to. A question many families have had to struggle with is what if the children’s response is negative?

The assumption that it is their birthright, and they must take over has been a long-drawn conclusion for most families. Therefore, conflicts arises when the family matriarch or patriarch realise that the next-of-kin or the child/children want to remain kins without the trappings of responsibility within the family business.

With family dynasties, this may result in strife, anger, disappointments, and heartbreak, leading to many misplaced assumptions about what is the right and wrong protocol and way-forward.

However, one of the startling realities we have learnt from the rising generation is the need for self-actualisation. Many children or young people want to have their own identity beyond that of the family, which means that they want their own legacy, achievements, and life outside the perceived chokehold of their family name and wealth.

In many instances, we realize that when it is time for the next generation to step into the shoes of their parents and become the co-owners, inheritors, employees of their family business or family wealth, they at times have chosen the path of resistance and decided against joining the family business, name or legacy. In extreme circumstances, we have even seen members of the next generation change their names for anonymity.

This situation is one of the many possibilities for the rising generation. In the last couple of years, we have seen the playing out of the next-generation choosing differently, a classic example is the case of Prince Harry and his departure from being a working royal.

It is imperative to note that a rising generation refusing to work for the family business does not make them less of a family member. They have blood ties and relationship ties, and in some cases, they may even have ownership and shareholding within the family business.

It is crucial for the family and the business to understand and appreciate that this person is an individual and allow them to create their own experience, even if they choose to do so outside the family scope or business. This compassion also means there’s a chance the family member could return to the business at a later stage because there is support within the family and less pressure to make a decision when they are younger.

Now, it may be your dream to have your son or daughter take over from you as the Managing Director or Chief Executive Officer of your company, but it may not be theirs. It is very crucial that the goals of your children are respected.

Respecting their goals ties back to giving them the space and tools to develop themselves and supporting them in achieving their goals. If someone joins the family business but thinks the job is a burden and limits their dreams, the adverse impact will not just be on the individual but will extend to the company, and family altogether.

It is best to help children figure out how the family can help them fulfill their goals and not coerce them into joining the family business. Maybe, it is best to develop them as knowledgeable owners who do not work in the company or perhaps you could start a “family bank” to help finance their independent business ventures.

If they do want an active role, think about what experience and education they will need, and how their leadership capabilities can be developed. The bottom line is to never force the children into the family business, rather, create an environment where the children can thrive and achieve their goals. It is also possible for the family to have a management team responsible for the active and day-to-day management of the company/ family business. As stated earlier, it is a possibility that the children will return to the family business in the future after exploring their own goals and interests.

At this point, it is worthy of note that families need to start planning now. Too many families start succession planning when it is already quite late. Many planning strategies should be implemented years in advance for any transfer of wealth, assets or the business between family members. It is also important that children are raised whilst being actively involved in the family business. They should be assigned clear roles and responsibilities within the family business early and exposed to the business dynamics.

One thing is clear and that is family business transitions aren’t always such a straightforward process especially if it is apparent that the next generation do not support the idea or want to be involved in family business.

While this might hurt at first, it does not need to be the end of the family unit or business.With some forward planning, honest communication, and compassion, it is possible to find an outcome that will be suitable for both generations. However, the help of a family wealth advisor cannot be overemphasized in helping with structuring the best possible outcomes suitable for each family.

Adejumo is an Advisor in the Meristem Family Office.