Chapter

Family-Owned
Business
Organizing/Operating Family-Owned
Business
Family Relationships & Business
Preparing For Succession & The
Next Generation
Estate Planning
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 Family Owned Business
A family-owned business may be
defined as any business in which two
or more family members are involved
and the majority of ownership or
control lies within a family. Family-
owned businesses may be the oldest
form of business organization.

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 A family owned business is a
commercial organization in which
decision-making is influenced by
multiple generations of a family.

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 Daughters Considering
Succession To Family Business
♀Get
Express
Involved
Interest
♀Meet
Outside
Women
Experience
♀Define
Learn From
Yourself
Seniors
♀Develop
Be Sensitive
A Vision

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 Family Resources
Borrow Capital
Sell Stock
Selling Personal
Assets
Other
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 Succession Planning
Succession planning is a process for
identifying and developing new leaders who
can replace old leaders when they leave,
retire or die.
In business, succession planning entails
developing internal people with the potential
to fill key business leadership positions in the
company.

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 Next Generation Preparation

Start Part/Full- Earn

Time Job Promotions
Start
Teaching/
Entry/Higher-
Level Position In Training
Business Leave Work At
Outside Work
Experience
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 Succession Problems
TreatAll Children Fairly
Nonfamily Employees?
Family Concerns:
Communication
Conflict
Estate Taxes
More Than 1 Child Succession
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 Selling To Family
Members- Advantages
Stays In Family
Source Of Family Employment
Stature Maintained
Owner = Relax
Pleasure Of Success
Strengthen Family
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 Selling To
Outsiders- Advantages
Assured Income
Lack Of Worry
Consult?

Release Tension
Relief Of Responsibility
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 Selling To
Outsiders- Disadvantages
Loss Of Family ID

Loss = Sadness

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 Estate Planning
Estate planning is the act of preparing
for the transfer of a person's wealth and
assets after his or her death.
Assets, life insurance, pensions,
real estate, cars, personal belongings,
and debts are all part of one's estate.

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 Estate planning is the collection of
preparation tasks that serve to
manage an individual's asset base in
the event of their incapacitation or
death.

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 Estate Planning Techniques
Gifts
Stock Sales
Living Trusts
Family Limited Partnerships
Minimize Cost
Retain Control
Buy/Sell Agreement

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