How to choose a trusted adviser

The statistics about the longevity of family-owned businesses are quite sobering. Although 90% of all U.S. businesses are family owned, and they employ 60% of the workforce, most won't survive past the second generation. In past articles I have addressed some of the myriad reasons why this is the case. In my mind, of all of the challenges an owner of a family business faces, failing to engage trusted advisers is certainly close to the top.

It's important for all businesses to collaborate with trusted advisers such as CPAs, wealth managers, attorneys and other professionals who have expertise in areas that are critical to long-term business success. The process of selecting those individuals is difficult for any organization, but it's even more challenging for family business owners, who often are reluctant to bring outsiders into the company's inner circle.

For many family business owners who take great pride in what they and their family have achieved, bringing in an “outsider” can feel like a failure. After all, it wasn't needed in the past to get to this level of success, so why now? Even with changes in the economy or industry issues that may negatively impact the current status of their business, bringing in an “outsider” can feel like a betrayal to their family.