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I Have No Qualified Family in the Business - What Are My Succession Options?

In previous posts we touched lightly on the staggering statistics that show nearly 75% of all family businesses will have difficulty with perpetuating business success. Continuing business success into another generation is often dependent upon a variety of key managers, especially if you do not have family in the business or your family is unqualified for ownership. In effect, they become the “Succession Bridge” because a committed group of competent, capable, and committed managers can keep the company moving forward.

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What Happens When There Are Multiple Successors and the Eldest is not the Best Qualified?

In many, if not most, family owned businesses, there seems to be at least one member of the next generation who wants to take a crack at being Number One.  What happens when there are multiple successors and the eldest is not the best qualified? 

The wrong choice can, and probably will, have devastating consequences on future family harmony and business success.   Picking a successor simply because (s)he is the eldest or rejecting someone based on gender can be fatal.  Unfortunately, we still see far too many businesses being lead by incompetent sons when highly competent daughters were stereotyped into inferior roles. 

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One Simple Way to Give Your Business a Morale Boost

For the past several months, we have awakened to a steady stream of depressing bad news regarding the economy. Retirement plans have turned from 401(k)s to 201(k)s, people are getting laid off, companies are desperate for bailouts and the list goes on. There is no doubt we are in extremely difficult economic times. If your employees are like others I have recently encountered in other organizations, they are in wonderment about whether they will have a job tomorrow and what the financial implications could be to their families. Have you reassured your employees lately?

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Down Economy...Could This Be the Opportunity of a Lifetime?

There is no question, we are in one of the most difficult economies we have faced in decades with oil prices through the roof, rising steel prices, housing market collapse, inflation concerns, political uncertainty, and the list goes on. Surely I do not have to elaborate any further as your business is likely feeling the impact. A decline in profitability is almost never a good thing…that is, unless you are looking to transfer equity in your business to a family member. This indeed could be an opportunity of a lifetime!

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Business and Family Success - Can You Have Both?

One of the mantras around our offices concerns the health of interpersonal relationships in a family owned business.  It’s quite simple, and I really like it.  Are you ready?  Here it is:  No business success is worth a family failure.

Over the years, I’ve come to realize that everyone’s family, my own included, experiences some level of dysfunction.  It can be anywhere from somewhat comical to outright tragic.  Imagine reaching a high level of business and financial success only to learn that your spouse wants a divorce and your children don’t want to be around you. 

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