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Posts from the ‘Business Succession Planning’ Category

The 4 Cs of Conflict-Free Family Businesses

Focusing on growth is harder when your co-owners are your relatives

by Fred Pidsadny for ProfitGuide.com

Family-run businesses are like elastic bands—they can be stretched only so far, in different directions, before tensions cause them to snap. Those who run family businesses know that stress can often be elevated by forces that don’t exist in non-family firms, from hiring obligations and bloodline silos to next-generation financial demands to under-performing family members. It’s one thing to discipline or even fire a stranger, quite another to turf a brother or daughter. For such businesses, finding a successful balance is an ongoing challenge.

So how can family-owned businesses avoid conflict and focus on growth? For a number of years I’ve been working with a company run by three brothers, each with their own family and their own unique take on strategy and succession planning. They have benefited tremendously by learning and practicing what I call the four Cs of strategy execution for owner-managed businesses:

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Family Business Planning Strategies

67% are at Risk of Succession Failure

If you are an owner in a family enterprise, the chances of your business transitioning successfully to the next generations is not very good.  This has not changed over the years. Statistics show a failure rate of:

  • 67% of businesses fail to succeed into the second generation
  • 90% fail by the third generation

With 80% to 90% of all enterprises in North America being family owned, it is important to address the reasons why transition is difficult. Read more »

What to do after selling your business

The contract is signed. The cheque is cashed. Your business has been sold or you’ve been given a golden handshake. Now what?

It’s a question many former company owners have a tough time answering. Whether you’re looking to sail around the world, start a new enterprise, or spend time with your family, you must now figure out what to do with your money—and with your life.

Here are 13 things business owners should do after leaving.

  • Relax

Shifting gears in a rush increases the likelihood of missteps, financial and otherwise. Take some time to reflect on what’s happened, and what’s to come. You don’t need to accomplish everything at once.

  • Define your goals

Do you want to spend time with family? Travel? Get involved in a charity or a community cause? Start a new business? Write it down.

 

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