The premier resource for family business executives featuring the latest family business news and research articles from the leading universities and business publications.
Why is it that so few family businesses make it into future generations?
Often the earlier generation in a family business rides a wave of success and everything in the business and family runs smoothly. Like a sports team, when the team is in first place the clubhouse issues are smoothed over, but when the team falls into last place, frustration builds and negativity takes over the team. In an established family business, the issues develop when either the success of the business slows down or the next generation is entering the family business. Everything just gets more difficult towards the end of the first generation’s run.
“Succession planning doesn’t have to be complicated”
We all know we need one, but why is it so hard to prepare a succession plan? One of the most common reasons is the difficulty in just getting the process started.
Good news. You may have already started without even knowing it. Try using an existing company organization chart with some modifications as a starting point.
As our family businesses grow it becomes increasingly more difficult to retain the small business advantages that made us successful and different from non-family firms. As we grow we need to begin involving more non-family employees in the planning and strategy of the business. We no longer can keep these plans “close to the vest” (continue reading)