Valuetainment “Only 30% of Family Businesses Survive" - How to Transition Your Business Successfully
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May 12, 2025 Discover the challenges of family business succession and why only 30% thrive. Gain practical strategies to prepare your kids for leadership roles, emphasizing training and a shared vision. Explore the importance of effective communication among stakeholders, highlighted by a case study of the Chicago Cubs ownership. Learn how to nurture the entrepreneurial spirit in children while promoting transparency for smoother transitions.
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Family Business Survival Rates
- Family businesses dominate 70% of global GDP and employ 60% of the workforce.
- Yet only 30% survive into the second generation and mere 3% reach the fourth generation.
Have Tough Business Conversations
- Have tough, scheduled conversations with your kids about the business early on.
- Avoid pushing conversations aside; avoidance drives kids away from involvement.
Enforce Meritocracy Rigorously
- Enforce meritocracy when involving kids in the business.
- Kids can't be given roles just by family ties; employees notice fairness.