Running a multigenerational family business is no small feat. Passing on a successful operation where multiple generations are motivated to work, take risks and raise their families is yet another feat. But each is possible, even highly likely, by following this blueprint for motivating the next generation.

When it comes to farm versus household accounts, separate checking, savings and other accounts can safeguard business funds from personal ones, allow farms to monitor farm spending more easily and assist with recordkeeping of the farm’s finances.

Family business succession that builds family relationships and continues to perpetuate a successful business requires attention, time investment, deliberate planning and communication.

Over time, the strength and size of unified family assets create a competitive advantage over the farms that fragment their assets with each generation. I don’t believe many people set out to erode family assets, but it often happens by falling into some of these transition planning traps.

Transition planning is never easy or simple, but some cases are much harder than others. If you are at an impasse, it may be time to evaluate the consequences of continuing with a transition plan so you can make the hard decision sooner rather than later.

Hard work, determination and perseverance aid four generations of dairy producers on Boertje Farms in Visalia, California.

Some of the concerns heirs have in taking over the family farm include the financial viability of farming, the challenges of modern agriculture and lifestyle implications.