Many entrepreneurs generate a huge amount of wealth that they want to pass on to their children and grandchildren. They are not yet a family business, but they want to become one. They want to see the wealth used wisely, and their business and investments to continue to add value. But the mindset that led to their success often undermines how open they are to the changes needed to continue business into a second generation. It’s the next-generation dilemma: How do succeeding generations preserve the founder’s legacy and continue to build a thriving family enterprise?
Business founders often fall into common traps that inhibit their continued success:
They become so confident in their own superpowers that they stop listening to others.
They feel that they are the only one who knows how to run the business, so they are not willing to step down or let go.
They expect growth to continue and do not anticipate major change.
They want to find a successor…
This article was written by Dennis T. Jaffe and originally published on hbr.org