How Technology Can Help a Family Business Evolve into the Second Generation & Beyond

How Technology Can Help a Family Business Evolve into the Second Generation & Beyond

Family businesses have been the backbone of society for centuries, providing stability and continuity through difficult times. According to Cornell University, the average life span of a family-owned business is 24 years (familybusinesscenter.com, 2010). About 40% of U.S. family-owned businesses transition into a second-generation, approximately 13% are passed down successfully to a third generation, while 3% survive to a fourth or beyond (Businessweek.com, 2010).

Other interesting statistics from Cornell include:

  • 77% of all new business ventures established in the United States are founded with significant involvement of the family in the business, and another 3% engage family members within the next two years (Chua, Chrisman & Chang 2004).
  • 48.1% of entrepreneurs said they grew up in a family business. (OnStartups, 2009).
  • 32% of family businesses were apprehensive about the transfer of the business to the next generation, and 9% see the possibility of family conflict as a result (PwC Family Business Survey 2012).

Many businesses led by family offices  are now facing new challenges as they move into the second generation and beyond. One of the biggest challenges is how to use technology and automation to stay competitive in an ever-changing marketplace.

There are many ways that family businesses can use technology and automation to their advantage. One way is to use it to improve communication between family members who are spread out across the globe. Another way is to use technology and automation to help streamline operations and make them more efficient. And finally, family businesses can use technology and automation to create a more modern and updated image that will appeal to younger generations.

No matter what approach family businesses take, it is clear that technology and automation are key to moving forward into the future. With the right strategy, family businesses can use these tools to stay competitive and thrive for generations to come.

Here are some tips for using technology and automation in your family business:

  1. Improve communication between family members who are spread out across the globe.
  2. Help streamline operations and make them more efficient.
  3. Create a more modern and updated image that will appeal to younger generations.
  4. Keep track of customer data and preferences.
  5. Automate repetitive tasks.
  6. Monitor financial data and performance.
  7. Improve website design and functionality.
  8. Develop mobile apps that will help promote and sell your products or services.
  9. Create virtual reality experiences that will give customers a realistic view of your family business.
  10. Stay ahead of the competition by constantly innovating and evolving your family business model.

Family businesses have always been at the forefront of innovation and technology, and they will continue to be so in the future. By using these tips, you can make sure that your family business is able to stay ahead of the curve and thrive for generations to come.

To learn more about how to make your small business a success, contact us at 239-349-9400 or email  hello@provalet.io. Provalet.io, a powerful and simple software that helps you run your field service company. With its user-friendly interface, you can manage your business without relying on pens, paper, or binders. Keep your business organized and running like a pro with Provalet.io.

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