Succession planning, offspring development, inter-generational relationships.
A family-owned business may be defined as any company in which two or more family members are
involved and the majority of ownership or control lies within a family. Family businesses are not necessarily managed by family only, and may be managed by individuals who are non-family. Family members are however often involved in the day to day functioning of the family business in some capacity and, more often than not, family members form the core of the senior management structure as well.
According to recent research by J. Tio & B.H. Kleiner, nearly 70% of all family firms fail before reaching the second generation and 88% fail before the third generation. Only a little over 3% of all family businesses operate as fourth generation level or beyond. Research in family business indicate that many vital factors are related to run an effective business including succession planning, offspring development, inter-generational relationships, and remuneration structures of managers.
Family business owners often battle with the following business challenges :
• What is the ideal ownership structure in 2nd and 3rd generation family businesses?
• What are the different options pertaining to the structure of the Board of Directors from the envisaged ownership and management?
• What is the ideal employment policy for family members?
• Who is responsible for the employment policy on family members: Management or the owners?
• What are the threats associated with the separation of ownership and control in a 2nd and 3rd generation family business?
• Where does family stop and business begin, and vice versa?
North77 Consulting is strategy consultants experienced to offer the service for Small and Medium Family Businesses. Our approach is to offer an affordable shared risk management consulting service.
+ 27 82 320 1842
*Please Note, We dont share your personal information with anyone.