Dinn, Hochman & Potter, LLC

Survey shows family business owners have doubts about succession

According to a survey conducted by The Alternative Board, family businesses are on the whole finding financial success. And most family business owners believe that they will continue to thrive and succeed. But this optimism about the present and the immediate future is tempered by a belief among many owners that their businesses will not be carried on under the control of future generations. In fact, 62 percent of those surveyed harbored such fears.

So why the pessimism? Well, there were a couple of reasons cited. For one thing, only 45 percent of the respondents said that their children played a role in the family business. In other words, there is simply no ground work being done to help the succession process. Equally telling, 26 percent of the respondents were not satisfied with their succession plans and 29 percent actually had no plan whatsoever.

If you are a family business owner who lacks confidence that your business will experience a successful succession, there are some proactive things you can do. For instance, make a concerted effort to get your children involved in your business. And if they show an interest in being a part of your company, give them opportunities to develop leadership skills and learn management principles.

And you also want to develop a strong succession plan. A succession plan can help motivate family members by demonstrating their stake in the business. It can inspire them to be ready to step into your shoes and perpetuate the success your company has enjoyed under your guidance.

An attorney who works with closely held companies can help you create a succession plan that suits your needs and helps ensure that everyone involved in your family business is prepared to take on the challenges ahead.

 

No Comments

Leave a comment
Comment Information
  • Preeminent | AV | LexisNexis | Martindale-Hubbell | PeerReviewRated | For Ethical Standards And Legal Ability
  • Lead Counsel Rated | LC
  • Super Lawyers
Email Us For A Response

Tell Us Your Issue

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Firm Location

Dinn, Hochman & Potter, LLC
5910 Landerbrook Drive, Suite 200
Cleveland, OH 44124

Toll Free: 800-233-4079
Phone: 440-446-1100
Fax: 440-446-1240
Cleveland Law Office Map

Firm Numbers: