Keeping Your Business in the Family Owning your own business is a most cherished American dream. A family-owned firm can provide a better working environment than a large impersonal company. Family members can take pride in seeing the family name on products and on the sign outside the door. A well run family firm not only stresses personal service and customer loyalty, but also provides benefits to the local community.
Some business owners build a business with an eye to selling it to the highest bidder.
Many entrepreneurs, however, hope that the business they have built will remain within the family. When members of the founding generation retire, with proper business continuation plans in place, they can take pleasure in knowing that the firm is in good hands. Such happy endings, however, cannot be taken for granted. According to a study by the Journal of Accountancy, fewer than fifty percent of family businesses survive past the second generation. Perhaps the children are too young, have other interests, or lack the founder's drive, feel for the market, or technical skills.