Fostering Family Business Entrepreneurship
This article from Silicon Valley/San Jose Business Journal stresses the need in family business to foster a multi-generational entrepreneurial spirit in order to successfully pass a family business from one generation to the next, stating:
"For family-owned businesses that want to grow, the entrepreneurial philosophy can mean the difference between basic survival and prosperity. If made a part of the family and business culture, it can infuse new life into the business, invigorate the senior generation, and inspire the successor generation to perform at higher levels, ensuring the growth and continuity of the family business."
One essential aspect of the process involves financial planning using tools such as "real estate trusts, preferred stock recapitalizations, stock swaps, buy-sell agreements, life insurance policies, private annuities, installment sales, limited partnerships and multiple corporations with a holding company or family capital corporation model."
Obviously, the use of such structures and tools requires consultation with experienced professionals.
Via Law & Entrepreneurship News
