An Upset Special - Beating the Odds with Your Family Business
Like many of you I saw my NCAA Tournament brackets blown up by the upsets that inevitably come during the first weekend of the tourney each year. Duke loses to Mercer. Stanford shocks Kansas. Dayton moves to the Elite Eight. Each year we are surprised and amazed – how do these little guys keep doing it? But as Malcolm Gladwell explained in his recent book David and Goliath we really shouldn't be surprised. The strengths of the Goliath may not be what are needed to beat a particular David. The willingness of a David to use an unconventional strategy may be just what it takes to surprise a Goliath.When considering passing along your business to the next generation you may feel like a "small school David" such as Mercer facing a "power conference Goliath" like Duke. Only around 30% of family businesses survive to the second generation, only 12% continue into the third generation, and the odds dwindle to 3% moving into the fourth generation or beyond. However, while the odds are steep, implementing a good game plan (the succession plan) that maximizes your strengths and compensates for your weaknesses can significantly increase the likelihood of an upset.Success is not only possible it is a realistic objective that can be achieved with proper planning under the guidance of qualified advisors. If you are interested in learning more about how your family business can be successfully transferred to the next generation please give me a call today. Swish!