When the possibility of family succession of a business exists, care must be taken to make sure the family member in line to take over has the education, experience and competence necessary to keep the business running successfully. Birthright alone is simply not enough to assure success. But even if a family successor has the qualifications needed to do the job, future success is not assured. The statistics attest to this; two-thirds of family businesses don't survive the passing of the founder, and only 10 percent make it to the third generation of family control. What is needed, besides a competent family member who is able and willing to take over, is a strategic plan.

Strategic planning, for both the business and the family, can help strengthen the family business and extend its life span. Planning for family-owned businesses differs from the planning used with non-family businesses because the family business must incorporate family issues — which are often emotion-laden — into its thinking. Family concerns and preferences that might have no basis in business operations often influence the business succession process. A family business succession plan puts things in proper perspective and lets the family focus on what's important: Keeping the business thriving.