Ingram's July 2026

SMALL BUSINESS ADVISER

by Debora Orozco

Securing the Future

Here are four strategies to create lasting impact at multi-generation family businesses. Across the U.S., family-owned businesses are the backbone of local prosperity. They create jobs and community, often re- investing profits directly into their local neighborhoods. Nat ionally, 32 million family enterprises contribute $7.7 trillion to GDP and employ more than 83 million people, according to Deloitte’s 2024 Family Enterprise Survey. Beyond the numbers, these enterprises embody values that families want to preserve across generations. Many business founders want to leave a multigenerational legacy, but doing so requires careful planning. Below are four strategies to help family businesses protect their heritage while positioning the company for future growth. Engage Future Generations Early and Often. With many family business leaders planning to step aside in the coming years as the demographic ages, succession planning has never been more important. According to Deloitte, 28 percent of current leaders plan to hand over the reins in the next five years. During the same time frame, 46 percent of the next generation hope to move into executive positions. Yet not every next-gen leader is prepared to take on that responsibility. Families can start by clarifying ownership structures to prevent fragmentation. A family constitution can outline the

ing active charitable involvement, ac cording to PwC. Estate-planning tools, such as family foundations, can for malize giving strategies and ensure alignment with the company’s mission. These structures also offer legal and financial frameworks for sustaining charitable work across generations. Generations may approach philan- thropy differently among family mem- bers. A Bank of America Private Bank study shows that while older gen erations often favor direct financial contributions, younger donors value hands-on involvement through volun teering, fundraising and mentorship. By blending approaches, families can keep their community impact strong while meaningfully engaging the next generation. Embrace Strategic Transformation. Adaptability is essential for lon-gev ity. Mergers and acquisitions can ex pand market reach, strengthen com- petitive positioning or diversify of ferings. For some families, selling a

qualifications and expectations for joining the company, such as completing a degree, gaining outside work experience or meeting agreed upon performance benchmarks. Beyond formal documents, engagement is essential. Annual family meetings, role-playing scenarios and culture-building activities can help younger members understand the com pany’s culture, mission and values. In addition, independent advisors such as accountants, bankers, financial planners and lawyers can offer objective guidance, help align expectat ions and bridge generational differences. Build a Strong Board. A well-structured board of directors can be one of the most ef-

stake to bring in pro- fessional management or welcoming outside investment can accel- erate growth while eas- ing generational tran sitions. An employee stock ownership plan is an other option, transfer- ring ownership to a trust that benefits em ployees (including fam- ily members), who are invested in the com

More than just economic drivers, family businesses are cultural corner stones woven into the fabric of their communities.

fective tools for sustaining a family business beyond the foun der’s tenure. Boards offer strategic oversight and guidance, professional expertise and objective decision-making. When forming a board, owners should define its purpose, whether it’s to formalize governance, guide leadership succession or provide market insights. The composition on the board also matters and should include a balance of family members and independent advisors to ensure diverse perspectives. According to PwC, age diversity can also smooth leadership transitions, allowing seasoned members to mentor emerging leaders. Formal agreements around roles, term limits and decision-making processes help maintain accountability. Preserve Philanthropic Commitments. Local family busin- esses often serve as community pillars, with 81 percent report-

pany’s success. ESOPs can be partic ularly valuable for businesses without a clear heir, offering tax advantages and ensuring the company remains loc ally rooted. Local family businesses are more than economic drivers; they are cultural cornerstones woven into the fabric of their communities. By engaging future leaders, building strong governance, preserving community commitments and embracing change, these enterprises can ensure their legacy endures for generations.

Debora Orozco is a senior relationship man ager within the Global Commercial Bank at Bank of America in Kansas City. P | 816.292.4400 E | dorozco@bofa.com

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I ngr am ’ s

Kansas City’s Business Media

July 2026