There are many different challenges currently facing family businesses around the United States today. One of the most alarming statistics for family business owners is that as few as 3% of family owned companies will ever make it to a fourth generation. While it is important to think about the financial future of the business, it is also crucial to consider financial planning, tax planning and estate planning initiatives as well. Furthermore, family members must be willing to work collaboratively to expand their efforts and their planning focus.
Intentionally planning how to enhance and nurture existing family relationships increases the chances of the business passing on to the next generation. Any relationships that are taken for granted have an increased chance of falling apart. New research outcomes from the behavioral economics field of study show that new planning strategies can help to bolster family relationships as well as the performance of the business.
Positive cultures in businesses, including those owned by families have cultures that come with more engaged, loyal, and creative employees. Today’s steps made by companies to foster positive cultures can help to draw in top talent and to encourage the business to last past a second or even third generation.