Years ago I heard the head of Claire's talk about the importance of succession planning. The daughter had taken over the business from the father and had continued to build the chain's growth. Since my teenage daughter loved Claire's, the story was particularly meaningful to me. Now, when I read about family businesses, I think of Claire's.
Most family businesses do not survive more that two or three generations. Kids have different interests than their parents. Siblings fight. Siblings have different goals and values, even when they grow up in the same family.
But if you want to keep your family business alive, take time to read the New York Times article "Lack of Succession Plan Puts Family Venture at Risk" --
http://www.nytimes.com/2010/03/18/business/smallbusiness/18sbiz.html
The article makes it clear how lack of a plan can tear a family and its business apart. It also has tips on how to do things right in building a family business with lasting value.
In my area, UCONN has a family business center that provides useful information and courses to help promote and sustain family businesses.
http://www.business.uconn.edu/FamilyBusiness/
Showing posts with label family business. Show all posts
Showing posts with label family business. Show all posts
Tuesday, March 23, 2010
Wednesday, October 7, 2009
Recession Ends Family Businesses
Did you know that 90% of the businesses in the United States are family owned or controlled? That includes many Fortune 500 companies. This factoid was news to me, as I read about the demise of some family businesses in the Wall Street Journal on Tuesday, October 6, 2009.
The recession is just cutting too deeply into the top line -- the revenue -- for the companies to stay in businesses. Many family businesses were caught off guard when sales dropped by 50%. Family members who always thought they would work in the family business forever are out of jobs. They have special relationships with employees and with other family members, so the end of the business is very, very hard.
Family businesses that survive tend to be ones that had some sort of disaster plan or that didn't have a lot of debt tied up in the business. It shows how planning and conservative business practices are really important. To read more, go to: http://online.wsj.com/article/SB125478399429765967.html?mod=sphere_ts&mod=sphere_wd
The recession is just cutting too deeply into the top line -- the revenue -- for the companies to stay in businesses. Many family businesses were caught off guard when sales dropped by 50%. Family members who always thought they would work in the family business forever are out of jobs. They have special relationships with employees and with other family members, so the end of the business is very, very hard.
Family businesses that survive tend to be ones that had some sort of disaster plan or that didn't have a lot of debt tied up in the business. It shows how planning and conservative business practices are really important. To read more, go to: http://online.wsj.com/article/SB125478399429765967.html?mod=sphere_ts&mod=sphere_wd
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