menopausebarbees
... the tales of two sisters

Dana lives in Seattle, and Tracie lives in Germany. We are businesswomen, writers and humorists. We write about life, dating, and today's modern women.

Generational Wealth- Who Cares?

As I referenced in my July 12th post, my business coach/mentor, Chris Flett asked me two questions when I launched my website www.therealdanafrank.com.  The first – What do I do?   I answered that I intend to share my insights on creating and transferring generational wealth.  The second question, is even more important: – Who Cares?

First off, I care.  I’m concerned about our youth of today.  I worry about the values and misguided priorities that social media has sold these young minds, creating a sense of entitlement and the ease of making fast money.  I see these young kids saving for a Louis Vuitton when some can’t even correctly spell the French designer’s name.  My Daddy always taught me “Just because it’s on your ass doesn’t make it an asset.”  I see job postings, desperately seeking to hire and a lazy society refusing to work. When I was a teenager, I revolted and refused to help in the family business.  Thankfully, I had graduated from the cleaning crew, but there was still plenty that I could assist with.  That Christmas, to my surprise and dismay, I opened a beautifully wrapped package and inside was a MacDonald’s uniform. I had an ultimatum, the “Golden Arches” or help out the family.  I chose the latter.  I had my driver’s license, and I was able to help cut costs by running errands for supplies, holding open houses for prospective renters, filing, collections, and bill pays.  It was on the job training. These days, I see an education system that is not teaching basic life skills, like how to write a check, balance a check book, or how to borrow money & credit 101. I see young adults coming to rent an apartment with zero clue about a budget.  I see misguided priorities when rent money is spent on X Y or Z.   I see a frustrated generation that won’t have the same means as their parents did before them to buy a home, finance a car or to travel to exotic destinations. I see pristine virgin credit being ruined after abusing a first credit card or getting an eviction on their record.  I see more and more adults moving back home to their aging parents or grandparents because of the lack of education and making poor choices.  I see parent’s grand years being dimmed by re-parenting lessons they should have conveyed earlier in life.

I see friends who, like me run their own businesses and now as Menopausebarbees are looking at the reality that the clock is ticking towards their retirement.  My friends who own restaurants, bakeries, jewelry stores, winemakers, textiles, real estate, wealth managers, dental practices, hotels, landscape companies and marijuana shops are amongst those who care.  We spend a lifetime building, creating, planting, and seeding and we work hard and train our offspring so that our efforts are not in vain.  I see families afraid that selfish motives will destroy the whole.  I vividly recall my father financing properties in my sisters and my names.  He did this to protect against estate taxes as well as to get preferable interest rates as he would have us occupy the property and receive favorable owner-occupied loans.  He would constantly remind us, “Don’t get confused, just because it’s in your name, doesn’t make it yours.  The property is a part of and for the protection of the whole.”  Inevitably, children become adults and make their own choices in life.  My father had a real difficult time adjusting to us as adults with our own aspirations and life goals.  True story, the night before I got married, he shared that we could just have a big party.  He had trained me to be a career woman, not June Clever!  I believe if he could have, he would have us all still “Under the Gerald Frank Umbrella.” However, we did venture, even having our own “little Beavers”, and I’m happy to say although there may have been some dreary days, he had trained us, and we were all prepared for any storm.

Who cares?  We should all care!

For those who like stats- check these out…

 

Family Business Statistics

Family businesses are an integral part of the US economy. Any company that has two or more family members in leadership roles, and in which the family retains a majority of the ownership or control of the business, is classed as a family business. Some family-owned businesses employ just a few people; others employ thousands.

Below are some of the key statistics regarding family-owned businesses and their place in the US economy.

Most Quoted Statistics

  • 60% of the US workforce is employed by a family-owned business.
  • Family-owned businesses are responsible for creating 78% of all new jobs in the US.
  • Only 30% of family-owned businesses last until the second generation, and only 12% will make it to the third generation.
  • 47% of people who own a family business are planning to retire within the next five years but don’t have any kind of succession plan in place.
  • Family businesses are contributing more than half (57%) of the total US GDP.
  • Just under 20% (19.3%) of US firms are family-owned.
  • Of the family firms that reported an annual growth rate of more than 10% in the year 2018, more than 80% also reported having a clear sense of purpose and agreed on values within their business.
  • Almost three-quarters (74%) of family businesses report a strong sense of culture and values.

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