Carrying the generational torch of my family's business: A young business woman's unique journey

"Nationally, two-thirds of successful first generation businesses don't survive to the second generation, and fewer than 15% survive to the third generation."

When I first read the above in a paper by Barbara Draper, Director of the UNH Center for Family Business I must admit that I was taken aback.

After all, I can still readily remember my father starting his dental handpiece repair and maintenance business from a room that was no bigger than a closet. The time and dedication he put into building his reputation, and with it the fortunes of what became the family business, continues to both humble and amaze me to this day.

He had a passion for what he did - and still does - that instilled in me a sense of wonder that drew me into the company as a part time worker in my early teens. While my friends worked at burger joints and other places that are usually associated with one's first foray into the working world I knew, even back then, that I wanted to be a part of the family business. Even if at the time my role was one of fetching coffee, answering phones and running errands.

As my experience and knowledge increased over the years, and with it my responsibilities, I had only in passing contemplated life after my father's retirement. Like death, which you know is inevitably going to happen to us all, assuming the torch for the family business was always expected but relegated to a Scarlett O'Hara "I'll think about that tomorrow" mindset.

Based on the Draper paper, I was not alone in this thinking.

Despite this tendency towards selective contemplation of the future, my father and I dutifully created a transition game plan that made the change as I call it seamless - at least from a business operations standpoint if not an emotional one.

Following a similar process to that outlined by Draper, we reviewed everything from strategic planning to governance and the needs of both family and non-family stakeholders. Through this exercise we created a clear and concise transition plan that was reminiscent of a finely tuned military operation.

Now one would think that with the proverbial "dotted I's" and "Crossed T's" putting everything in order, all the transitional pieces would simply fall into place. While this is true to a certain extent, the one thing that no amount of planning can introduce into the equation are the values and passion that have defined the business under the original founder.

I am talking about the kind of commitment that drove my father to work all of those extra hours in a confined space so that he could not only meet but exceed the expectations of his then new clients. This wasn't the mere execution of a business plan, but a reflection of dedication to something beyond the balance sheet.

As I had alluded to earlier, I was very early on drawn into the business because of my father's passion for what he did and for delivering the best service to his clients.

The real question was whether or not I possessed this same level of passion rather than merely feeding off of it in a supporting role. In short, was I ready to assume the role of leadership and chief motivator?

This is a question that I think far too often does not get asked by those transferring the torch as well as those assuming its care. And this is where I believe, that the majority of generational business failures occur.

For whatever reason, whether it be a sense of familial obligation or the absence of other options brought about by a lifetime expectation, few seem to address this elephant in the room.

The very fact that despite my enthusiasm for the family business, this question even crossed my mind, speaks to its very importance as a linchpin consideration. Or to put it another way, even if a solid succession plan is put into place, without having the same level of passion that my father had, I doubt that the business would succeed beyond me. Think of it in terms of taking a photocopy of a photocopy. With each successive duplication or reprint, the picture becomes fuzzier and less discernible. Perhaps this is the main reason why fewer than 15% of all family businesses fail to survive the third generation.

All this being said I am of course happy to say that after considering the above factors, the apple as they say does not fall far from the tree. Whether through osmosis or genetic predisposition, I am as passionate if not more so when it comes to the family business, than my father.

In the end, I believe that this is the key factor for running successfully - with torch in hand - the next leg of the generational business race.