The dream of any entrepreneur is to build a successful, profitable business that can survive long after he or she retires. Often the goal is to pass the business down to children or close relatives, as evidenced by the fact that 80% of businesses worldwide are family-owned. In the U.S., family-owned companies are responsible for 60% of all employment and 78% of new jobs.
Despite their prevalence, 70% of family businesses last just one generation before they either fail or are sold. Some common pitfalls can cause problems in transitioning the company down the road.