As noted in a recent Jewellery Business article, research demonstrates although most owners would like to transition their businesses to the next generation, 67 per cent don’t make it to the second generation, and 88 per cent don’t make it to the third. (For more on these numbers, consult the fourth edition of Ernesto J. Poza and Mary S. Daugherty’s Family Business, published by South Western Cengage Learning in 2014.)
These statistics are alarming. However, we now know what is going wrong and how to fix it. With the proper tools and processes, family business owners can give their businesses and their families a greater likelihood of success. This article, the first in a two-part series, outlines some of the basics required to do so.