SURVIVING THE FAMILY
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The Forum of Private Business conducted I extensive research into the nature of UK private businesses in 1989 and from 2,000 replies learnt that more than 80% of partnerships and 63% of companies were family owned. This pattern is prevalent throughout the haulage industry. A characteristic shared by many family-owned businesses is for management to take nothing more than wages out of the company, preferring to plough the profits back into investing for future growth and providing for future generations of the family. Nevertheless, family businesses still face tough survival problems. A common pattern—from clogs to clogs in three generations—occurs when a first generation of the family launches the business, the second builds it and the third loses it. Careful planning for succession—or a timely sale—is vital if the business is going to have a long-term future.
Forum for Private Business Contact: 01565 634467.