Skip to content

Successfully Pass On Your Family Business To Next Generation

Starting a family business is a difficult adventure, especially when day-to-day tasks can overshadow your goals. We know your business is something you want to last, and planning ahead will help you achieve that success.

Old wisdom is clear: The critical issue concerning succession was to identify, develop, and install the successor to the business's top executive. That seems simple, but most people don't consider all the other elements like non-family executives and advisors.

The predominant family business statistic has been that only 30 percent of family businesses survive the second generation. The need for succession planning to avoid becoming a victim of that dismal statistic was the reason for developing the family business field.

But family business experts have come to realize that a 30 percent "survival" rate rather than being a symbol of failure is actually a phenomenal success achieved by the advantages that family strength brings to business enterprises.

We now know that the analogy of "passing the baton" is terribly inadequate. We now understand that succession rarely involves an incumbent and a successor. Instead, the process involves all of the key players, including family members, executives, and advisors.

Not just a matter of successor development and the incumbent's preparedness to let go, the process is a complex stew of social, cultural, financial, legal, strategic, moral, and other dimensions that resist logical, "business-like" thinking.

Success, we came to recognize, depends on being able to combine and balance businesslike thinking with family-like thinking. Clearly, "succession" is inadequate to describe the process. Among the many categories of planning - besides succession - too often neglected in family business were strategic, estate, operational, and governance.

Failure to plan in any of these areas can be fatal. In many instances, the issue was not "how to" but "why not?" What would keep a family business from doing what it should and could to achieve its goal of self-preservation?

The need to develop processes dealing with the massive complexity of changes relating to personal, family, and corporate finances (including the effort to deal with the estate-tax issue) is key. This includes issues of strategy and structure in the business, family values in relationships and structure, governance and accountability, and each of the key players' personal journeys.

If you run a family business it's extremely important to start the planning process now.

Please call us and we'd be happy to talk to you about how to get started.

Back To Top



Also See...

Business Strategies
Starting A Business
Starting a Business? 3 Things You Must Know
Our New Business Formation Service
Form of Business Organization: Which Should You Choose?
Business Forms of Organization: Frequently Asked Questions
Advantages of Incorporating
Incorporating: Frequently Asked Questions
Advantages of Limited Liability Companies
Limited Liability Companies Frequently Asked Questions
Business Plans: How To Prepare An Effective One
Raising Capital: How To Get Money For a Small Business
The Home-Based Business: Some Basics You Should Consider
Small Business: Frequently Asked Questions
Financing: Frequently Asked Questions
Recordkeeping: Frequently Asked Questions
Choosing a Professional: Frequently Asked Questions
Sales Volume Break-Even Analyzer
Running Your Business
Recordkeeping and Cash Flow: Effective Techniques
Recordkeeping: Frequently Asked Questions
Cash Flow - The Pulse of Your Business
Our Cash Flow Management Service
Travel and Entertainment: Maximizing The Tax Benefits
Travel and Entertainment: Frequently Asked Questions
Employee Benefits: How To Handle Them
Employee Benefits: Frequently Asked Questions
Document Locator System: A Handy Aid For Keeping Track of Your Records
Buying a Computer System That Meet Your Needs
The Home-Based Business: Some Basics You Should Consider
How To Best Manage Your Team
How To Make the Best Use of Your Time
Financial Planning Tips For Business Owners
The "SIMPLE" Plan: A Retirement Plan for the Really Small Business
Small Business: Frequently Asked Questions
Financing: Frequently Asked Questions
Sales Volume Break-Even Analyzer
Inventory Analysis Calculator
Business Ratios Calculator
Our Strategic Business Planning Service
Growing Your Business
Evaluating Your Market: A Basic Review
Pricing Your Products and Services: A Basic Review
Marketing and Pricing: Frequently Asked Questions
Developing An Advertising Program: A Basic Review
Make Your Business Explode With Referrals
How To Get Your Customers To Trust You
The Nicest Way To Build Your Business
How To Ethically Blow Your Competitors Out of The Water
Uncover Your Business's Most Valuable Hidden Asset
How to Profitably Grow Your Business With Less Stress
Recordkeeping and Cash Flow: Effective Techniques
Raising Capital: How To Get Money For a Small Business
Commercial Loan Calculator
Marketing Campaign Profitability Analyzer
Sales Volume Break-Even Analyzer
Securing Business Loans
Raising Capital: How To Get Money For a Small Business
Show Me The Money! Strategies For Securing a Loan
Our Loan Proposal Service
Commercial Loan Calculator
Loan Amortization Calculator
Lease Vs. Buy Analyzer
Financial Ratios Calculator
Selling/Exiting Your Business
Your Business Succession: How To Plan For It
Maximize Your Wealth With a Winning Exit Plan
Our Succession Planning Service
Business Valuation Calculator
 

Ask a Question

Find comfort in knowing an Expert in accounting is only an email or phone-call away.

(908) 237-1809

We Are Here to Help

We will happily offer you a free consultation to determine how we can best serve you.

Contact Us

Send us a File

Use our convenient SecureSend page to securely deliver a file directly to a member of our firm.

Secure Send

Newsletter

Subscribe to our newsletter to receive news, updates, and valuable tips.