Why do only 10% of family businesses make it to the third generation?
Or more importantly what did those 10% of family businesses do that the other 90% didn’t do?
Typically the 90% of business will have followed this path ⬇️
➡️1st Generation
– BUSINESS FIRST, work hard, stay focused & support the family
➡️2nd Generation
– FAMILY first, business decisions that can cause family conflict are avoided, third generation children growing up in a protected family environment.
The Balance Sheet is eroded.
Succession-planning not obvious.
To make it successfully through ➡️3rd Generation, the founder should start building the Family Business Foundations as part of the transition to 2nd Generation.
Protect the Business
Protect the Family
Protect the Ownership
All needing treating differently.
All need respect.
All intrinsically linked.
For guidance on how to approach this, get in touch.
Let us improve that 10% statistic!
