Pitfalls of Your Kids Taking Over the Family Business

Owning a family business is as much a part of the American dream as having a house with a front porch swing and white picket fence. It's a fine dream to have, and for many, it can be a reality. However, owning a family business is hard. You're dealing with all the usual problems business owners face while adding complex family dynamics to the mix. Things can grow even more complicated when it's time to leave the business.  In this episode, I discuss some of the pitfalls that can arise when your kids take over the family business. I look at why the three-generation rule may not be entirely accurate and explain how entitlement isn't just a problem in the younger generation. Likewise, I examine how misaligned dreams, poor planning, and even sibling rivalry could create major problems for the future of your family business. "Education helps us and, if we apply it, we can often sidestep pitfalls." – Justin Goodbread This week on The Financially Simple Podcast: The Three-Generation Rule (1:10) "Most of it is nonsense!" (1:50) Entitlement (4:09) Is your dream your child's dream? (10:22) Planning for future generations (12:20) Sibling rivalry and the family business (15:10) Mitigating the pitfalls of your kids taking over the family business (16:27) Our Favorite Quotes:  "Do we not give any credence to the fact that these children have been in the business and have grown up seeing the business nurtured, seeing the business morph, seeing the business grow?" – Justin Goodbread "You want to start thinking about your exit long before you ever plan on exiting the company, whether that be through a sale outside the company or whether that be a transfer internally, to the children. – Justin Goodbread    About The Financially Simple Podcast  If you are looking for a podcast that speaks directly to the challenges and puzzles of running a business, you've come to the right place. The Financially Simple podcast was built for you. With over 400 episodes and counting, our host Justin Goodbread covers a broad range of topics, from starting a small business to prepping it for sale, to growing your personal wealth. Justin's combination of analytical skills, tough love, and a healthy dose of experience delivers practical ideas that will benefit business builders at every stage of their business journey.   If you have questions or comments for Justin, submit those at: https://financiallysimple.com/ask-justin/    Connect with Justin:  Financially Simple newsletter  Facebook  LinkedIn  Twitter  Subscribe Here:  Apple Podcast  Spotify  Google Podcast  iHeart Radio  Stitcher    Let us know your thoughts about the show - please leave a review on iTunes to help others discover the podcast.    Financially Simple is a division of WealthSource Partners, LLC ("WSP"), which offers investment advisory and financial planning services. All investing involves risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Business planning services offered by WealthSource Business Advisors, LLC ("WBA").    This podcast is distributed for informational purposes only. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast's guests and do not necessarily represent the views and/or opinions of WBA, WSP or their affiliates or representatives. Statements made in this podcast are subject to change without notice. Neither WBA, WSP or their representatives, the podcast's hosts or its guests have an obligation to provide revised statements in the event of changed circumstances. Statements made in the podcast are not to be construed as legal or accounting advice or as personalized advice of any nature. Listeners should conduct their own review of any statements made or strategies discussed and exercise judgment or consult with their own professional advisor to see how the information contained in this podcast may apply to their own circumstances.