While creating a successful family business is an exceptional achievement on its own, many founders wish to help ensure future generations can build on this success and continue to generate wealth for their families.
However, that’s often easier said than done.
In keeping with the adage “from shirt sleeves to shirt sleeves in three generations,” many affluent families fail to maintain their business and preserve their wealth beyond the founder’s great-grandchildren.
For many families, a major obstacle is failure to adequately plan for the future: Some don’t identify and nurture family talent or properly reinvest capital. Or they’re too slow to make necessary business changes. In some cases, their mission and goals may be unclear or inflexible.
Fortunately, there is a path to multigenerational prosperity. When families takes steps such as establishing shared goals, diversifying their business’ revenues and prioritizing the education of future generations, it can help to ensure both the future success of the enterprise and an enduring legacy for the founders.