How to make the family business last for generations

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The statistics on family-owned business look like this: 30 percent survive to go to the second generation. Only 12 percent make it to the next generation. By the time the fourth generation comes along, that number plummets to four percent.

What goes wrong? Two local money managers wrote a book about this very topic called "First Generation Wealth."

"We want our children to have it better than how we had it. We walked five miles in the snow to get to school in the morning, you're riding the bus, the next generation is in a carpool, and then somebody shows up in a chauffeur-driven limousine," Balentine says. Here are three tips for beating the third generation curse. Teach your child about money in age-appropriate ways starting as a toddler. Keep the lines of communication open throughout life about expectations and how to make a business work. Make sure everyone is living below their means. Whether you make $2 million dollars year or $50,000, the rule is the same. "It's important to understand that maybe your children don't want to work as hard as you do.

 

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