You’re the proud owner of a family-run restoration business. You’ve worked hard for many years to build your business. And you intend to hand it off to the next generation when you retire. Since you won’t be selling your family business, you don’t need succession planning, right? Wrong.
Although surveys show 88% of owners believe members of their family will be running their business in five years the cold hard numbers tell a different story:
- Only 30% of family-owned businesses survive into the second generation.
- 12% of family businesses operate into the third generation.
- 3% of family businesses survive into the fourth generation or beyond.
If you are a family-owned business, don’t assume your family wants to take over your dream.
If you think there’s a chance your business may be among the 70% that won’t survive to the next generation, you need to incorporate a viable exit strategy in all of your businesses decisions. Now rather than later.