Family-owned Businesses

Written By Toni Zavana

According to Gallup, family-owned businesses account for:

  • 80% to 90% of the world's firms;

  • Generate more than half of the U.S. gross national product; and

  • Account for three-quarters of the private-sector economy in the Gulf Cooperation Council (GCC).

But only about 30% of family-owned enterprises survive past the founder, with that number narrowing to 12% for surviving through the third generation.

There are several considerations for maintaining, growing, and protecting a legacy business:

  • Always consider a succession plan early on for who will take over the business and the direction you want it to go. Ask yourself: How can I gradually train (add name here) to be proficient in daily operations?

  • Employ life insurance as a means to stabilize the business in the event of a loss. As the principal owner and operator of the family business, a lot may ride on your knowledge and efforts in the operations. Still, what happens if you unexpectantly die and surviving family workers need time to find a replacement for you or get themselves up to speed so that they do not jeopardize losing the business? Consider key person insurance, business partner/buy-sell insurance, and individual policies to protect your family.

  • Effectively use intelligent business tools to save you time and money. These can range from having a stable, versatile bank that consistently looks for business loans and products to help your business thrive to simple scheduling for your client appointments, and locating convenient, reasonably priced office space. There are several tools to consider; those listed below are some of my personal favorites that I have used.

    • BookedIn - If you need appointment scheduling for your business, give @Bookedin a try. It lets your clients book online without having to call. (BONUS: click the link to get an extra month for free!) https://bookedin.com/refer?cid=215&userid=6066816117899264

    • Davinci Virtual - with literally thousands of offices across the country (and a few abroad), Davinci offers great value with great-looking offices.

    • DropBox (alternative to iCloud and Google cloud space) - By installing the Dropbox desktop app using this link, you will get 500 MB of extra space. There are free plans available too!!!

    • OneUnited Bank - is great for online banking needs.

Source: Solving Succession Problems in Family-Owned Businesses, April 8, 2019, Gallup.com/workplace.

*This post contains affiliate links.

Toni Zavana https://www.EastOceanStrategies.com
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