Why You Should Pass Your Business to Your Children

Beware of statistics and catchy sayings.

In this case, the statistic to be wary of is that only 13% of family businesses make it to the third generation. The catchy saying is, “The first generation makes the money, the second generation invests the money, and the third generation loses (or spends) the money.”

This resonates with us. It’s the sort of thing that sounds true – after all, “hard times make good men; good men make good times; good times make bad men; bad men make hard times,” right? This wisdom has so permeated our culture, that even in very Christian circles, we are hearing stories of businessmen disinheriting their sons and acting like this is a virtuous act.

They’ll only lose it anyway, the reasoning goes. But even while we can think of high profile cases of spoiled heirs acting badly in public, the data tells a much different story, of milder, quieter individuals who get to work and don’t make a big splash in the tabloids.

The Book of Proverbs says, “A good man leaves an inheritance to his children’s children,” so shouldn’t we expect to find that it is, in fact, a good idea to pass your wealth onto the next generation?

The statistic that only 13% of family businesses make it to the third generation is false. In fact, family businesses are significantly more durable than its non-familial counterparts.

Harvard Business Review puts it this way…

The bearish commentators are coming out in full force, warning of a coming crash that some economists and analysts, such as John Greenwood and Steve H. Hanke, warn could be another Black Monday – the largest single day stock market drop in U.S. History, when the market lost 22 points. Doomsayers such as legendary investor Jeremy Grantham have gone on record as forecasting a drop of 27-50% sometime next year, leading some to advise a shift towards quality stocks or bonds. Bears maintain that overvaluation, lingering inflation, stagnation in earnings, and inadequate policies by the Fed will contribute to the bubble burst. The bulls on the other hand, while not quite as pessimistic, are still noticeably quiet this week, with some even admitting that the market could be heading for rough waters…

Your weekly chance to test your Bible knowledge! The answer to today’s question may surprise you:

Q: What are the three generally accepted terms for the first five books of the Bible?

Answer at the bottom

TIPS & TRICKS

The Top Mistakes Leaders Commonly Make

With Candido Segarra, executive trainer

As people, we tend to think of ourselves as totally unique, and while that may be true in some ways, the reality is that most of us have very similar struggles. That’s especially true in business, where leaders often make the same four or five mistakes over and over again.

I sat down with Candido Segarra, a former Nestle executive with 14 years of experience consulting for McKinzie and 17 years as CEO of Foresight Executive Training, to gain some insight on common mistakes in leadership.

Candido is a dignified guy, with an easy laugh and a welcoming presence, but when the conversation turns to business, he gets serious. I asked him, to begin, about the most common mistakes he sees when trying to train executives and other business leaders.

“Unrealistic expectations in business and people,” he answers quickly.

Those unrealistic expectations, according to Candido, can be split up into the following issues…

• The European Union has reached a deal with Elon Musk to authorize SpaceX to launch their satellites.

• Carl Truman explains the fundamental hypocrisy of pro-Hamas progressives in the current war, and gives a warning to Christians.

• The United Autoworkers Union expands its strike.

• The Gospel Coalition contends that Gen Z is well-positioned to experience spiritual renewal.

• Netflix continues its attempt to enter the video game industry.