Studies have shown that as family businesses pass to second and third generations, their chances for survival can rapidly decline.
Although images of mom-and-pop type stores often come to mind when we think of family businesses, there are many business giants that were started by families and some that are still family owned. In Wisconsin, think S.C. Johnson, Kohl's and Trek, all of which began as family businesses; two of which still are. In fact, research conducted by Boston Consulting Group shows 30 percent of all businesses with more than a billion dollars in sales are family-run.
Family businesses are an important part of our economy, and three effective strategies can help them thrive for generations to come.