What can I do to prepare my small business for the generation to come?

The process of passing a family business onto the second generation is so difficult that not even a third of them survive. Beyond that, roughly half make it to a third generation. In a normal day in the U.S., 40 percent of businesses are confronted with a change of owners. Those who have founded the companies are struggling to find remedies, but there aren’t many options.

Here are a few possible remedies to this problem:

  • Sell off the company.
  • End the business.
  • Remain as the owner, but contract others to manage.
  • Keep ownership and management within the family.

The most common causes for failure of the transition of the small business are as follows:

  • There is no strategy.
  • The business is missing energy.
  • The owner lacks the motivation to change the business.
  • The coming generations are not interested in working with the business.

The main reason for closure is not having a strategy. If planned properly, the business has no reason to worry.

Posted in: Small Business

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