In this episode, we sat down with Robert and Matt Knowles of Knowles Associates, a full-service insurance firm serving corporations, organizations, and families throughout 22 states. We had a great conversation about a very interesting (and complicated) topic: successfully transitioning a family-owned business to the next generation. 

According to two 2010 studies cited by Cornell’s Johnson School of Business, the average life span of a family-owned business is 24 years. Only about 40% of U.S. family-owned businesses turn into second-generation businesses, and just about 13% are passed down successfully to a third generation. Only 3% to a fourth or beyond. Whether you own a business or not, you can probably guess a lot of the reasons why mixing family and business can get complicated. Communication problems, lack of interest or skillset, an unwillingness to give up control, and other family dynamics can lead to all sorts of problems.

We discuss how the transition has gone so far, what they’ve learned along the way, and what is next for their firm in the years to come. Bob and Matt brought so much thought to their succession planning process, as well as to this discussion. Enjoy!