Chayet & Danzo, LLC Chayet & Danzo, LLC www.Coloradoelderlaw.com
Call for a Free Initial Consultation
Direct303-872-5980
Toll-Free 1-888-472-1088
Email Us
Compassion, talent and dedication: guiding colorado families and Their Trusted Advisors During Times of Need

Part 1: Keeping a business in the family for generations

Small family-owned businesses, farms and ranches are what give Colorado character. They are a source of jobs for local people, give back to their communities and often pay the taxes that keep schools and public service funded.

When you have worked so hard to make a business successful, what do you need to consider in a transition to the younger generation? What things can you control to ease this transition? In a series of blogs, we will provide tips that may help your family enterprise beat the odds.

Why don't more businesses survive past the second generation?

Most family enterprises don't make it to the second generation. Even fewer make it to the third or fourth generation.

The reasons are varied. Siblings might not get along or they might not have the same skills. A child who takes over the business with a wife playing a significant role, might get divorced. There might not be a process in place to deal with conflict or someone wanting to leave and start on a different path.

Planning: a process rather than one-time exercise

The good news is that you are reading this post and thinking about the transition from an individual venture to a multi-generational family enterprise. Planning that includes an experienced estate and trust attorney is one way to protect your enterprise.

This also goes to the first step - identifying issues that might cause problems. Baby steps is the frequent analogy. But consider that each of those first steps is a totally new undertaking for a baby that requires skills like balance and hand/eye coordination. While these initial steps are small, they require effort.

A candid conversation about family dynamics, the structure and day-to-day operations of your business and which sibling(s) may want to continue the business is a beginning. A transition must be viewed as a process rather than one-time event. You will need to provide leadership along the way.

In our next post, we will explain some of the decisions you need to make and then how you go about implementing them.

No Comments

Leave a comment
Comment Information

Watch Our Firm Video

We are the premier Elder Law firm in the Colorado region. We set ourselves apart from other law firms in the area with our talent, dedication, compassion and ability of our attorneys to handle any case in Elder Law. We serve Colorado families with experience and dignity in your time of need.

View More Videos

Denver Office
650 S.Cherry St., Suite 710
Denver, CO 80246

Phone: 303-872-5980
Fax: 303-355-8501
Denver Law Office Map

Edwards Office
105 Edwards Village Blvd.
#D-201
Edwards, CO 81632

Toll Free: 888-472-1088
Fax: 303-355-8501
Edwards Law Office Map

Aspen Office
600 East Hopkins Avenue
Suite 301
Aspen, CO 81611

Toll Free: 888-472-1088
Fax: 303-355-8501
Aspen Law Office Map

  • Rated by Super Lawyers Macro Chayet SuperLawyers.com
  • Rated by Super Lawyers Frank J. Danzo, III  SuperLawyers.com
  • Member National Academy of Elder Law Attorneys, Inc. TM
  • Avvo Rating 10.0 Superb Top Attorney Elder Law
  • 2015 Five Star Professional Wealth Manager Multi-Year Winner
  • Our new 2015 Medicaid Book: how to protect your Family's Assets from devastating nursing home costs
  • Proud Sponsor 2015-Denver Colorado Senior Law Day
  • Peer Review Rated For Ethical standards & Legal Ability TM Martindale Hubbell
  • Haystack