In this industry spotlight, we want to highlight key insights into family business succession.
As a young parent, you hold your baby in your arms as you sit at your desk. You are doing all the tasks that you couldn’t get accomplished during the normal business hours. You look at this innocent life and think, “someday baby, you will be sitting in this exact desk, doing these exact chores”. But will they?
As a business owner, you now have another “stakeholder” in your decisions in this new life. Your business must provide great service for your families, must be profitable to provide for your household and now provide more for that household as this new creature has increased your economic liabilities. Yet, with compassion you are thinking you have just begun to train your next generation of business owner.
First, know the odds.
However, the trends are changing. The 30% figure is long term, over the last 20 years. Over the past five years, that figure has dropped to 19%. This is due to many factors, but a large part is that Millennials are not wanting to take over traditional family businesses. They would rather sell and invest the cash into an enterprise that gives meaning to them.
To keep a family business alive and well is difficult. Running a funeral business is especially difficult.
Running a family business is tough. You need to provide for multiple children, some of whom may not want to be active in the business.
This is one of the services we have offered for four decades!
We help business owners:
A good business succession plan is not a dream, but rather a reality. It is in writing. During a pandemic people go from being alive and healthy to dead in the space of a month. Having the ability to review the plan regularly and make changes and circumstances change. So, hug the baby. Have idyllic thoughts.
Just remember, planning for a business succession is a blend of knowing the values, the people, the risks, and the odds.