Transition plans important for survival of family businesses

In “Running the Family Business: The 8 Biggest Challenges,” Greg McCann, founder of McCann & Associates, Deland, Fla., told National Auctioneers Association members that if they include their families correctly in their businesses they will have a strategic advantage in the marketplace.

Unfortunately, McCann says only a third of family businesses survive from generation to generation. Only a third of family businesses have strategic plans, and only a third have estate planning beyond a will.

So, at a time when U.S. family businesses now comprise more generations than ever, McCann says it’s important to have transition plans in place.

These plans provide clear goals, and they give family business owners a way to measure outcomes. They also help leaders navigate change, and they base decision making on core company values.

When putting together a plan, though, McCann says family business owners must seek the advice of others.

“If you invest other people in a goal … your chances of succeeding go up three times, 300 percent more likely to achieve this,” he says.

The July 15 presentation was part of the NAA’s annual Conference and Show in Orlando, Fla.

According to McCann, the “8 Biggest Challenges” are as follows:

1. Credibility
2. Professional development
3. Management of wealth and power
4. Marketability
5 and 6. Taking ownership for the future of the business
7. Being mindful of one’s behavior
8. Objective feedback and support

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Filed under Auction Industry, Conference and Show, Education, NAA Members

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