The Succession of Family Owned Businesses

Family-owned businesses are normally passed down from one generation to another. The founding members of the company are those who have built the business and made it a success. As the next generation grows into adulthood and prepares to take over the business, they must learn as much about it as they can if they choose to have continued success.

By the time the business is passed on to the third or even fourth generations, most do not have the same desire as the original family members.  It may be that the family members may be able to take a business only to a certain sales and profit level before some outside help is needed to grow the business beyond its present level.  Sometimes the talent pool within the family diminishes to the point that the company may not only stop growing, but actually slide backwards into insolvency.  This dramatic falling away of in-house talent from the company vision and the company mission can have a devastating effect on the success of the business.

One of the ways to reduce the risk of loss of a family business, in fact any business is to seek out the services of business consultants that specialize in helping a family-owned business stay on track, no matter how many times they have been passed down to succeeding generations.  Business data reflects the fact that many family-owned and operated business prosper more quickly and successfully when they bring in outside talent, perhaps on a consulting basis, to look at the business with what we may call “Fresh Eyes.”

Vision Economics is a company of business and economic development consultants who can help you and your family keep the business moving forward on the same track it has followed for years, or where necessary, help the family put the train back on the tracks to success.

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