Doud Hausner and Associates
Those of you who have heard Ernie Doud speak about frustrations in the world of family businesses have probably heard this “Top Ten” list. We’ve gotten so many requests for copies of the article that a version is reprinted with his permission. With apologies to David Letterman, here they are:
10. “Too many people I’ve known have died soon after they retired (or acted like they were dead).”
There’s no correlation between mortality and retirement. However, it helps to develop interests outside the business to which you can turn your attention.
9. “Without me, the business is nothing.”
Get your ego down to a more realistic size. In fact, under your successors, the business may evolve in ways you’ve never imagined. More…
Inadequate Estate/Financial Planning
Blamed for Family Business Failures
Editor’s Note:The following data, reprinted by permission from Richard Dino, Ph.D., Director of the University of Connecticut Family Business Program, and based on a study by Karen File, an Associate Professor at the University and Russ Prince of Prince & Associates, clearly points up the need for proper estate planning and periodic reviews to protect the firm and family.
Inadequate estate planning and failure to properly prepare and provide for the transition to the next generation, coupled with lack of funds to pay the estate taxes, were among the three leading causes for the failure of nearly 800 family-owned businesses in recent years.Conflicts with family members not actively involved in the business, was a close fourth. More…