Family businesses come with the likelihood that mom-and-pop are eventually going to hand the keys over to the next generation. Mike and Ray talk about how founders and their children can prepare for that transition to happen gracefully so there are no Succession-style bloodbaths or power struggles on the horizon.

Subjects Covered

PASS THE BATON: Mike referenced the control freak tendencies entrepreneurs can have when it comes to their businesses. That can make it painful for founders to admit they need need to start ceding some control to the next generation that will take over one day. Give up some control. Thankfully, there’s plenty of guidance out there to help make it easier to pass the baton.

LOGAN LESSONS: We had Succession references aplenty in this episode, as Mike and Ray touched on the constant backstabbing members of the Roy family committed against each other in the HBO series. But there’s also some business lessons to take from the show, even if you’re not a scion of a power-hungry billionaire media mogul.

THE NEXT GENERATION: Enlisting a younger family member to take over a small- or medium-sized business means you need to know what their values and priorities are, to make sure they reflect what’s going on in the business. Dr. Jean Twenge’s new book Generations presents the latest data comparing the six generations currently coexisting in the U.S.

KNOW YOUR ROLES: Earlier in the month, Mike and Ray spent an episode talking about the importance of establishing boundaries and roles within a family business. That’s especially true when it comes time to hand over power to the new top dog, with possibly angry siblings needing to know their place and compensation levels in the new world order. Take a listen.

MAKE IT LEGAL: And once everyone has talked through who’s doing what in the next generation of your family business, it’s crucial to get everything reviewed and documented legally. Consult your company attorney(s) for referrals to a great lawyer to handle succession planning, but here’s some of the basic considerations to review from the very beginning.