In fact, roughly one-third of all businesses included in the Fortune 500 are family businesses.
But not all of the family business statistics are rosy.
It should further develop a fair and tax strategic buy/sell agreement.5. This should consider the options of purchasing versus gifts/bequests, and the possibility of combining these options.
It should also consider outside financing versus self-financing options.
Finally, for best results, bring in professional consultants to assist with the planning process.
Success plans for family-owned business can get so contentious that most families choose to sell it than deal with disputes among the family, according to "Bloomberg Businessweek." In one extreme case, the Puma and Adidas brands caused the town of Herzogenaurach, Germany, to split between and Puma and Adidas wearers.New entrepreneurs are encouraged to build succession planning into their initial business plan.It’s also important to involve family members in the planning discussion.Management may feel it deserves extra equity for running the company, but owners sometimes feel they deserve more because they do not draw salary.You should have at least one non-family member on your board of directors to give an impartial opinion on a successor, according to the SBA.Succession planning is an important part of running a family business; however, only two out of three family-owned businesses have some type of succession plan in place, and only one in four have a plan that is sufficiently robust and documented, according to Pricewaterhouse Coopers.Here are some important items to consider when developing your succession plan to ensure a successful and smooth transition.Some 90 percent of all businesses in this country are either family-owned or family-controlled.They come in all shapes, sizes and colors, representing all sectors of our economy.Finally, it should establish a schedule for executing the plan.Best Practices for Successful Succession Planning To execute a succession plan successfully, Cypress Technologies owner Susan Ward recommends starting your planning at least five to 10 years before your anticipated transition.