Generational Business Transition

A good man leaves an inheritance to his children’s children, but the wealth of the sinner is stored up for the righteous. – Proverbs 13:22

Since you usually cannot pass down your job to your children if you work for an employer, one of the key benefits of operating a kingdom business is that your children can inherit the business.

The Bible teaches that a good man leaves an inheritance to his children’s children; this suggests that we must think “multi-generationally” when building a kingdom business. Biblical Entrepreneurs are taught that a kingdom business must be built to withstand at least three generations. This multi-generational concept is not just seen in the book of Proverbs, but it is also seen in Genesis, in the life of Abraham our patriarch.

God gave Abraham a vision to possess the land of Canaan and form a new nation, but this could not be carried out in his lifetime; he passed the vision on to Isaac. Isaac could not complete the vision so he passed it on to Jacob. Jacob became the manifestation of the promise. His name was changed to Israel, which meant that his children were the beginning of the new nation. Though the nation was manifested through Jacob and his children, it took Moses and Joshua to lead the people into the Land of Promise and for the nation to finally be formed. What if Abraham did not think “multi-generationally”? The vision would have never been materialized. What vision has God given you? Are you planning with a multi-generational strategy in mind?

In planning with a multi-generational strategy in mind, it is important to note that it is not a guarantee that your children will be the ones to inherit the business. Though it is God’s best, it is not always automatic. They must be called, possess the ability and grace, and they must have the willingness to carry it forward. You cannot force it on them nor can you pass it on to them if they are not called or prepared. Thinking “multi-generationally” does not mean that there is an entitlement; rather it means that we are committed to seeing God’s will realized beyond our lifetimes.

For those of you who are at that point of transition, the question you must ask yourself is, “How do I prepare for the transition?” In preparing for the transition, you must first ask yourself, “Do I have an Isaac in my household like Abraham did?” If one of your children has the ability, commitment, grace and vision, then you must first consider him or her because God calls families not individuals. When God calls an individual He involves that individual’s entire family, it is the individual’s responsibility to prepare the family to receive the vision. If you do not have an Isaac, then you must look for a Joshua; someone who is not necessarily related to you but whom God has called to lead at this time. You must be discerning enough to let him lead as though he were family.

Whether you are transitioning the business to an Isaac or a Joshua, how should you make this transition as smooth and efficient as possible?

1. Commit the matter to prayer – seek the Lord for wisdom and guidance to ensure that you are directed by His Word and His Spirit.

2. Seek counsel – make sure you surround yourself with the right counsel to ensure that all of the right financial and legal implications have been thought through to protect the integrity of the vision. Make sure there is a clear strategic plan that you can pass on.

3. Ensure that the person is called – above all, he or she must be called. Remember that no matter how skilled an individual is if he is not called to carry the vision forward, he will fail. Being called ensures that one has the grace to endure the difficult moments. One of the keys to knowing that an individual is called is that the vision must cost him something. Make sure he pays the necessary price to lead. He must earn it. Without an investment there is no appreciation.

4. Make sure he or she is prepared – calling alone will not guarantee success. Preparation is essential to prevent premature failure. You may need to have someone else lead the organization temporarily until the person is prepared. This is to protect the integrity of the calling and the organization. Make sure the person is both spiritually and naturally prepared.

5. Determine the timing of the transition – make sure you properly time the transition; transitioning too early could force you back in the saddle and transitioning too late may compromise the future of the organization. Timing is everything. Make sure that all of the financial matters on both sides are clear.

6. Transition slowly – rushed and quick transitions are a recipe for disaster. Phase the transition in such a way that the new leader can acclimate to his new role while still receiving support from you.  Before you withdraw completely, ensure that he or she is completely accepted by the stakeholders. Give him time to build his confidence and give others time to build confidence in him.

7. Let him or her lead – should you still be alive and healthy, resist the temptation of interfering in the operations of the organization. Let the new leader lead, otherwise you will undermine his authority. Take on something else to keep you occupied if you must, to help you resist the temptation of interfering. You must be submitted to the new leader, rejoice in his success, and intercede for him using prayer during his moments of trials.

What phase of development is your kingdom business in? If you are still years away from transition, now is a good time to incorporate a personal exit strategy into your strategic plan and create a culture of legacy within your organization.  If you are in the season of transition, use these seven steps to evaluate your approach to the transition and seek the necessary guidance.