The Prerequisite of Transferring Family Business Ownership

Family business consultant, author and farmer Jolene Brown cautions against a possible entitlement attitude when it comes to transferring your family's operation to the next generation. Brown suggests the following prerequisite of the younger member of the family before considering transferring ownership of the family business to the next generation.

Brown: "I want them to have some skin in the game, They've had to work for someone else before they had to work for you— that is one of the standards. What did they do? Did they buy a snowmobile? Did they buy a car? Or did they save money away to maybe buy some cows or pay some rent on some land that they can control or buy a piece of equipment. They need some personal skin in the game that shows that they have some investment in this business. The next thing is I want them to have an education of at least two years that will benefit the business. The next one is I want them to have experience. I want them to work two to three years for a non-family boss. Those lessons learned can never be taught by Mom and Dad because sometimes we are not the best teachers. The next one is they have to have a fire in the belly. The last thing before you transition assets I want them to demonstrate they are a good commercial: for this family, for agriculture and the whole industry. Then I know we have the right people ready to transition assets."

If you would like to learn more of Jolene's wisdom and wit — go to jolenebrown.com