7 Big-Name Businesses That Were Passed From Father to Son - The Cheat Sheet
Navigating the business world while also tied to family loyalties and values can create a difficult set of tensions, and it’s more difficult than it seems to pass the baton from one generation to another, effectively creating a family dynasty... Some companies, like Enterprise Holdings (the car rental company) and Ford Motor Company passed the headship of the company on to the next generation, but then looked outside the family for future leadership. ) The business dealings of every family are different, but the Harvard Business Review wrote about common traps family businesses should try to avoid in order to keep their legacy — and company — alive. Authors George Stalk and Henry Foley, both family business advisors in varying capacities, wrote that 70% of family businesses are sold or have failed before the second generation even has a chance to take them over. Only about 10% of family-owned businesses stay alive long enough for a third generation to take the reins. One of the traps Harvard Business Review mentions is finding a place for family members in the company, even if they have no relevant experience and haven’t cultivated the skills necessary to run a company. Instead, there’s a “best practice” emerging that encourages younger generations to attain a college degree, and even work outside the family business for a few years to gain relevant experience, the authors note. Source: www.cheatsheet.com
