Family Business Consulting

Creating Balance Among Families and Their Businesses

Family businesses are not often without challenges and conflict among family members who work in the family business and sometimes even those family members not involved in the day to day business operations.

The ability of a family business to successfully transition to the next generation depends on a carefully designed succession plan. A well-thought out plan to transition the family business alleviates family conflict, damage to the business and its employees and secures a legacy for future generations.

The primary decision in any succession plan is for the existing owner to evaluate who else is capable of running the business and this analysis may have to include consideration of non -familymemebers. It also may require consideration of looking for individuals beyond the family and current employees the business grows.

It is also important to create a “timeline”as to when certain events and transitions of duties and management will occur and address any changes in job descriptions, titles, compensation and related issues. A plan is only as good as the actual implementation of the plan.A plan that never actually happens is only an idea and not a plan.

50% of family businesses fail in the second generation of ownership. 

75% of businesses fail in the third generation of ownership. 

In any succession plan there will undoubtedly be the need for training and decisions to be articulated as to how transitions in duties will occur. These issues can also be challenging and trigger side issues of emotions and friction between family members. As a result,these matters also require a generous allocation of time to occur in order that all issues are ultimately worked out and transitioned properly.