Family Business Consulting with American Management Services
Helping Family Businesses Grow through the Generations
Over the last 30 years, the small business professionals of American Management Services have worked closely with thousands of family owned businesses, representing more than half our client base. Our professionals spend six months to two years focused on each family business, getting to know the real issues they face, and focus on such common problems as:
- Is ownership spending enough time minding the business?
- Are you putting profit maximization above all else?
- Are you holding family members 100% accountable?
- Are non-family members discouraged due to a perceived favoritism among family?
- Do personal battles dominate the workday creating a hostile environment?
- Are there too many family members on the payroll?
- Are family members hired for positions they are not qualified for, simply because they are family?
- Have there been clearly defined roles and responsibilities for all family members, as appropriate?
- Have family members been properly trained or taught the art of management and accountability?
Family Business Statistics
- Family businesses comprise 90 percent of all business enterprises in North America, and 62% of total U.S. employment. (Small Business Administration 2011)
- Only 30% of family businesses in America will be passing the reigns to the next generation, even though close to 70% would like to keep their business in the family. (peakfamilybusiness.com 2011)
- By the third generation, only 12% of family businesses in the US are typically still viable. (peakfamilybusiness.com 2011)
- By the fourth generation and beyond, only 3% of family businesses continue to exist. (peakfamilybusiness.com 2011)
- 47% of the companies surveyed had no succession plans in place. (peakfamilybusiness.com 2011)
- By 2050, virtually all closely held and family owned businesses will lose their primary owner to death or retirement. Approximately $10.4 trillion of net worth will be transferred by the year 2040, with $4.8 trillion in the next 20 years. (Robert Avery, Cornell University, “The Ten Trillion Dollar Question: A Philanthropic Gameplan”)
- Of CEOs due to retire within 5 years, 55% have not yet chosen their replacement. (Arthur Anderson/Mass Mutual, 2003)
- There are 1.2 million husband and wife teams running companies. (NFIB 2003)
- The number of family businesses run by women has grown 37% in the past five years with an average annual revenue of $26.9 million last year. (Boston Business Journal, September 4, 2003)
- 52% of family firms have hired at least one female family member full-time, while 10% employ two female family members. (Arthur Anderson/Mass Mutual, 2003)
- The typical American family firm donates $50,000 annually to philanthropic causes, mostly to local, educational and religious organizations. (MassMutual/Raymond Institute American Family Business Survey, 2003)