70% of family businesses fail before reaching the second generation, 90% before the third (source: Family Business Institute) Do you want this to happen to you? Did you know there is such a high failure rate? Is your future doomed? Few business advisors and even fewer owners know the business structuring secrets that give you the best odds for success. How much time and energy have you invested in planning your exit? And face it: You will exit, voluntarily or otherwise.
The secret to a successful multi-generational business transition is Business Optimization.
- Is your next-generation management unqualified, unprepared and therefore reluctant or incapable of leading?
- Does your business run through repeatable trainable processes or the sheer force of your will?
- If you are unreachable for a month or two, where would your business be when you returned?
In our 35+ years of experience working with family businesses, we’ve seen many that have unnecessarily fallen victim to these high failure statistics. We’ve seen those that have thrived after transitioning. We know the secrets. These same transition secrets properly applied will add to your cash flow and profits, reduce your burden of management and increase the saleable market value of your business! The secrets are called Business Optimization. It takes 2 to 5 years.
When should you have begun to optimize your business?
- The ideal optimization plan creates a turnkey business, one that is not dependent on you. Your role is strategic guidance.
- Did you start your business as an expert in all areas? Probably not. Your team needs time to learn their roles and responsibilities. Business Optimization is an ongoing process, not a one-time event.
- Are your children the best qualified to run the business? What’s best for the business is best for the family. Tough discussions, yes. But best for the business, your employees and your family.
JBVal has helped many family businesses with their transition. To explore if and how Business Optimization will benefit you contact us for a free 30-minute strategy session to discover if and how we might help you with yours.