A multi-generational business is a family business in which members of two (or, in some cases, three) generations all work together. For instance, a man may start a construction company in his 30s and then bring his son on to run it with him in his 50s.
Doing this feels natural in many ways, as it's a simple career path for a child, and it's a chance for the parent to leave a legacy -- and significant assets and earning potential -- for their heir. But that's not the only benefit. Others include:
- Having multiple generations work together means that they can offer different perspectives and outlooks.
- Working with a child while still involved with the company makes business succession planning easier for the parent as they prepare to pass the company on.
- A child may have a better work ethic at a family business because they're proud of the company and the family name, and they care more about a parent's approval than a random boss.
- Many family companies see lower turnover rates. The children view the company as something they're involved in in a deeper way than if they just landed a job, so they're not constantly on the lookout for something better. This is what they want to do, and they'll work hard to make it a success.
Parents who get to work alongside their children can learn to see them in a new light, understanding their strengths and weaknesses. This can all help when doing succession planning, as they'll learn how to set up a plan of action that really fits their family.