The Successful Family Business: A Proactive Plan for Managing the Family and the Business

The Successful Family Business: A Proactive Plan for Managing the Family and the Business

The Successful Family Business: A Proactive Plan for Managing the Family and the Business

The Successful Family Business: A Proactive Plan for Managing the Family and the Business

Synopsis

Over 80% of the businesses in the United States are family owned and managed. Family business statistics show that less than one-third pass successfully to a second generation, often the result of insufficient planning. Drawing from numerous in-depth examples (both positive and negative), Hess offers a fascinating glimpse into the dynamics of family business management and specific strategies to promote the health of the enterprise. A comprehensive guide, The Successful Family Business covers the spectrum of topics from creating a family values statement and code of conduct to resolving conflicts among siblings to managing transitions in leadership and the potential sale of the business.

Excerpt

Family businesses are a major part of the U.S. economy. Eighty percent or more of all businesses in the United States are family controlled. Over 60 percent of the U.S. workforce works for a family business.' Family businesses embody our country's entrepreneurial spirit and represent the hopes and dreams of many for independence, community, self-sufficiency, and wealth.

Likewise, in Europe and South and Central America, family businesses dominate the economic structure and control significant parts of the economies of many countries. Thus, family businesses are an important part of our global economy.

Family businesses are owned by families-groups of related individuals, each with their own unique mixture of values, history, and emotional relationships. Through the family business some families seek continuity, closeness, a sense of community, and belonging to something meaningful.

Unfortunately, the success rate of most such entrepreneurial businesses in general are poor. Estimates are that 70–80 percent of all private businesses fail during the first four to five years of existence and fewer than 10 percent last ten years. Family business statistics show that fewer than one third of them pass successfully to a second generation.

This book's focus is the family business-any business that has or will have two or more generations or two or more family branches either working in the business or owning the business. What makes family businesses different from non-family businesses is the added complexity of family dynamics that cause most family businesses to operate, to adopt strategies, and to make decisions differently. Families factor in family needs, hopes, and fears into their decisions regarding the business and only family businesses have sibling or cousin rivalries, jealousies, and competition for parental love, approval, and financial favor. Family dynamics, family ways . . .

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