Will you be a Survivor
by Diane Denslow
Studies indicate that only one third of family businesses make it from the first to the second generation yet a majority of family business owners intend for their businesses to continue. What happens? Most businesses are sold to non-family members due to a lack of planning. The following are key areas to address if the family business is to remain viable and in existence for future generations.
Plan for a transition of leadership. A family business owner should begin this planning for transition a minimum of ten years prior to the time they plan to leave the business. Family members that will be taking over the management of the business must be prepared for their respective roles. This means giving them increasing areas of responsibility and the opportunities to develop the required skills so they are ready to take the reins when the appropriate time comes. More…
