When people think about leaving a legacy, they often wonder, "How will I be remembered?" Legally, though, a legacy involves how someone’s property, money, and business get passed down to family and loved ones. I’ve been in business for 25 years to support my family financially. Now that my kids are grown, my business focus has changed.
As a franchisee with Celebree School, I’ve set up a network of small businesses. Although the early childhood education field was new to me at first, expanding and opening new locations has fueled my passion for this meaningful work. I found a scalable business model for a legacy business, which is about more than just making money; it’s part of how I’ll be remembered.
Realizing you want to hand down a business to your children is just the beginning. Preparing your business for family succession is tough. My experience in several businesses taught me that setting one up to pass on is different from building one you plan to sell.
Here are some tips for starting a family legacy business:
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Check Out Every Opportunity: Do thorough research and assess each opportunity to decide what kind of business to create or invest in. Consider how the business will do in tough times and if it allows for long-term growth. Ensure your children could learn and manage it, and it aligns with your family’s values. Choose a field that excites you to ensure sustainability for future generations.
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Set Financial Goals: Once you choose an industry and operational model, set clear goals for the business and personal milestones for your family. Determine financial targets and timelines to achieve them. It’s crucial for your legacy business to hit a certain financial target to be successful for future generations. My goal was owning and operating ten schools, starting two per year—I’ve got five up and running since my start in 2020, setting the pace for success.
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Create a Succession Plan: With your business plan and goals in place, focus on creating a succession plan. Smooth generational transitions are vital for preserving a family business legacy. A good plan eases concerns about finances and responsibilities when passing the torch. Be transparent about your plans to ensure a smooth leadership transition. Consider family members’ skills and lifestyles when preparing for future roles, allowing time for necessary training.
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Keep Communication Open: As you bring family into the business, communicate openly. Recognize that not all family members may want to take over. Keep discussions open to understand their perspectives and what might need changing. Clear communication reduces stress when passing the legacy. Set guidelines for handling conflict, wealth management, and involvement to maintain harmony and transparency. Strong family governance helps navigate challenges and protect both the business’s and family’s interests.
Jason Skidmore, owner of JMS Management Group and a multi-unit owner within Celebree School, began his career co-founding a healthcare transportation company before launching a management company and an automotive repair and inspection business. Now, he’s building a legacy business that benefits the community long-term through early childhood education services.
