Family Business Matters

‘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

Larry@LawrenceKirsch.com

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

Larry@LawrenceKirsch.com

www.LawrenceKirsch.com