The Danger of Holding On Too Long

Posted by: Rod Kurtz on January 13, 2006

Many successful entrepreneurs are reluctant to let go of the businesses they started, but in holding on too long, senior-generation family members inadvertently damage the things they love the most: the business, their children, and perhaps even their grandchildren.

There are business, psychological, family, tax, and other rationales for letting go. While there’s an exception to every rule, it can’t be stated too strongly that holding on too long with an unrealistic desire to control the affairs of the business and your children is a dire mistake. It’s simply good stewardship to perpetuate your business and pass opportunity along to your children and key nonfamily managers, gradually releasing the reins of control.

Wayne Rivers
President
Family Business Institute
Raleigh, N.C.

Post a comment

 

About

Want to improve the way you run your business? Entrepreneurs, academics, and consultants from diverse industries offer practical advice on a variety of topics each business day.

To submit a tip for consideration, first check our archive of previous tips to make sure you're not repeating a tip someone has already contributed. Then send the tip to Small Business channel contributor Michelle Dammon Loyalka. Because of the volume of material she receives, she may not respond to each individual.

BW Mall - Sponsored Links

Buy a link now!