family business matters
DESCRIPTION
This presentation discusses a process of assisting family owned and closely-held businesses in developing transition plans and creating the strategy unique to each company to achieve the owners’ goals.TRANSCRIPT
‘Family Business ‘Family Business
Matters!’ Matters!’ Strategies for Economic SuccessStrategies for Economic Success
Presented by: Lawrence KirschA Galliard Certified Family Business Advisor
Marketing & Management Consulting
Strategies for Economic SuccessStrategies for Economic Success
Lawrence Kirsch
760-845-1633
www.LawrenceKirsch.com
Why are Family Businesses Why are Family Businesses
important to our economy?important to our economy?
• 95% of businesses in the US today are family-owned or
closely-held.
• 80% of those businesses have 20 or fewer employees.
• However, these businesses are responsible for
contributing over 45% of our GNP (Gross National
Product)!
So, these vital members of our So, these vital members of our
communities…communities…
• generate more new products;
• create more new jobs;
• and contribute more to your local • and contribute more to your local
communities…
Than their corporate
counterparts!
But, it’s not easy…
Business Development CycleBusiness Development Cycle
Growth
Hard work
Comfort
Liquidation
Almost 35% sell
Time
Wonder Blunder Thunder Plunder/Wonder
Adapted from: Beyond Survival – Leon Danco
Almost 35% sell
or liquidate –
often failing to
realize their
intended value.
Reality Check:Reality Check:
85% of American Business Owners state:
“I want to pass this business on to the next generation”
Sadly, fewer than half have the opportunity to do so…
Ownership TransitionOwnership Transition
• Many recent studies indicate that as many as 55+% of
business owners will transition out of their current
positions within the next 5 years and most have no
formal plan to do so…
� No successors
� No financial plan
� No solid options for considerations
Thus, the impending crisis…Thus, the impending crisis…
What must Family What must Family
Businesses Businesses Do?Do?
• Develop a well integrated,
comprehensive exit strategy.
• Determine the current and desired • Determine the current and desired
future value of your business.
• Develop a strategic plan that
acknowledges the issues of both the
family and the business.
Integrated PlanningIntegrated Planning
Business NeedsFamily Needs
Strategic Planning
And…And…
• Develop a succession plan – that identifies
the necessary leaders for the future.
• Hire the right fit for the organizational
culture and the strategic potential.culture and the strategic potential.
• Create a leadership development
strategy.
• Consider an Advisory Board.
Change with DignityChange with Dignity
• A successful, well planned
transition will provide
opportunities for
enrichment and joy and the enrichment and joy and the
chance to change the
course of one’s life with
dignity.
What Do Family Business What Do Family Business
Advisors do?Advisors do?
• Help family businesses to protect their assets
and secure their ROI.
• Coordinate services – bring integrated solutions
to family businesses.to family businesses.
• Help match the expert who is the best ‘fit’ for
your needs.
• Bring practical, customized solutions that meet
needs rather than push products that provide
returns.
Leave a LegacyLeave a Legacy
• Family and closely-held businesses will endure or die
depending upon how effectively they plan for the future. depending upon how effectively they plan for the future.
With the help of their communities, those who survive will
have managed to re-create the energy and wonder that
fueled the original entrepreneurial spirit.
Thank You!Thank You!
For more information, contact:
Lawrence Kirsch
760-845-1633
www.LawrenceKirsch.com