Will your business still be in the family 400 years from now?
The answer to that is “not likely”. Statistically, Only 40% of family owned businesses survive to the second generation, 12% to the third, and 3% to the fourth. One reason for this might be lack of interest by subsequent generations, another might be the evolving market and economy, but one of the main reasons that family businesses don’t survive to the second and third generation is lack of planning.
Passing on the family business may be difficult, but not impossible, as this article about Shirley Plantation in Charles City, VA shows. Shirley Plantation has been in the same family for almost 400 years, and is still going strong. The reason for this success, says Charles H. Carter, the current executive director of the plantation, is that the family has planned for the future each step of the way.
Business succession planning is a key element to owning your business at any step of the game, not just at retirement age. This is because it is not merely about exit strategy, but about making goals and planning for future success. And leaving the business to your children is not your only option. You may decide to sell your business, or leave it to a partner. The options are out there, if you only know where to find them.
That’s where your estate planning attorney comes in.
Whether your business is in its first generation or its fifth, whether you intend to pass it down or sell, planning is essential if you want your business to survive. Your estate planning attorney can help you do just that. Whether through wills and trusts, or the succession planning described in this blog, it is our business to look to the future. Trust us to help you do the same.
I have just written a book that echos your message to family businesses about the need for succession planning.
Except my book is different –it is 139 page novel that tells a interseting story about two guys who meet on a flight to Barbados. The two fictioanl characters reveal their family business history. One character has made a mess of things the other character (okay its me) shares 12 questions that have successfully guided four generations of his family to sell their business
I am a Canadian author but I have been selling lots of books to US lawyers who are using the book to prospect new clients….I would be happy to send you a complimentary copy if what you see described on my web-site resonates with you.
Great blog … you are right on message!
Tom Deans Ph.D.
Author, Every Family’s Business