Apr 21, 2020
Running a family owned business has never been more challenging for many in times of economic change as well as focus. This is especially true as we are coming out of a health and economic crisis. Children have been left with businesses to run, trusts to manage and major economic challenges. Family businesses account for 64 percent of U.S. gross domestic product, generate 62 percent of the country’s employment and account for 78 percent of all new job creation. However, 30% of all family owned businesses make the transition into the second generation, 12% into the third and only 3% into the fourth and beyond.
Frank Fabela, leading private CEO peer advisory boards for Vistage Worldwide, has focused on helping many family owned businesses, specifically in creating a board of advisors. Frank has actually been on both sides of the table, working as an engineer inside several family owned businesses, and also as an advisor and mentor for his own group members who own family owned businesses.
In transitioning to the next generation, the statistics show only 30% of family owned businesses will be successful. Frank outlined some guidelines that have helped many start moving through this process successfully, most specifically with a board of advisors and setting up a unity of command. You can find out more about Frank at https://vistage.com/chairs/frank.fabela.