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Amos Is SO Wrong...

Updated: May 28


Entrepreneurial leaders often involve family members in their endeavors. They hope to leave a legacy that their children and grandchildren can enjoy. These family-owned enterprises have a unique set of challenges. Overcoming these difficulties is complex and, more often than not, fails. 70% of family-owned businesses are sold or fail before the second generation gets a chance to take over (Harvard Business Review). This statistic drastically improves when there is succession planning. Lesson: Most family-owned businesses never make it to second-generation leadership. Amos is 72 years old. He lives to work. He is the founder of three businesses. But he has never embraced the idea that there is no success without a successor. Succession planning has never been a priority. What is at stake?

  • The livelihood of twenty-eight employees

  • His platform to serve the community

  • The livelihood of the employees of the vendors his businesses generously supports:

  • The vehicle dealership

  • The dry-cleaners

  • The supermarket

  • The gas stations

  • The repair garage

Amos has spent no time considering how his businesses will continue to grow their profitability, bless the community, and advance their purpose in his absence. At his death, his businesses will fall to his family members to manage or liquidate. But, because he fails to plan for his businesses to succeed without him, they will be worth little more than the cost of his funeral. His heirs will own worthless companies. Having never been trusted with any decision-making opportunities; they are clueless in knowing how to make businesses thrive. Lesson: A lack of succession planning jeopardizes family-owned businesses' profitability, impact, and blessing to their community. Amos has family that he has never included in any kind of succession planning. He has failed to build a team that would be valuable to prospective buyers. What could be lucrative for Amos, his family, his employees, and his community is squandered. And it’s all because he will not accept responsibility for his business's success in his absence. What should Amos be prioritizing?

  1. Raising up a team that is valuable for future impact, potential buyers, and his retirement income. This could include his family members.

  2. Having life insurance that allows his businesses the opportunity for continued impact in his absence.

  3. Having an estate plan in the form of a written will that minimizes family bickering at his death.

How do you get started? Recognize that you will eventually not be present to lead your company. You will leave, either in a hearse or in a moving van. Accept your responsibility to lead the charge in developing a succession plan and execute it! Would you help me write about succession planning? Connect with me and let me know your thoughts, struggles, and successes. I want to answer your questions and fan your fire into a flame. Email me at harryt@cultivatingimpact.biz or connect with me on LinkedIn. To help, I have created a free resource for you, "The Seven Pitfalls To Avoid In Succession Planning." You can get it today for free: CLICK HERE TO DOWNLOAD. Harry T. Jones P.S. Get "The Seven Pitfalls To Avoid In Succession Planning," CLICK HERE.


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