Small Business News: Business Owners Reveal Big Worries

Knowing if the money will last long enough weighs on the minds of wealthy business owners. And almost one-third indicate they are still undecided on their succession plan, according to a new survey released by SunTrust Bank Private Wealth Management.

The study surveyed 201 business owners with at least $10 million in annual revenue on concerns about family and business, how they plan to transition out of their companies, and what keeps them up at night.

"The survey shows that when it comes to personal finances, business owners are more concerned about building and protecting wealth than the inherent risks in their business," said Dave Johnston, Senior Vice President, SunTrust Private Wealth Management.   

How much is enough?
Money is the primary concern for business owners as they transition out of their current business and look to the next phase of life. About half of those surveyed are worried about having enough money to last as long as needed. Here are additional results:

• Respondents cite protecting and building wealth as their top two personal finance concerns.
• For a third (31%), managing cash flow is a major concern.
• 30% say transitioning wealth to the next generation is a top concern.
• When it comes to sustaining their personal wealth, 71% of business owners believe they need $1 million to $10 million of investable assets to sustain their lifestyle, while 24% believe they need $10 million or more.
• They believe maintaining the wealth of future generations will require a lot more, 44% indicating it will require $10 million or more.

Honey, I spoiled the kids
Almost all business owners surveyed believe they are good mentors to their children and that their children respect the work they do. They also believe that their children share their values. In spite of that, many believe their own success has spoiled the kids and few expect the next generation to join them in business.

• About half (49%) worry that the success of their business has spoiled their children.
• Only 26% plan to bring their children into the family business, while just six percent strongly agree with the statement, "I would be upset if my children didn't want to join the family business."
• Among those who do plan to bring children into the business, the biggest challenge they anticipate is potential conflict or difference of opinion between themselves and the child they bring into the business.

The survey also revealed these key findings:

• Business owners overwhelmingly believe a strong desire to succeed and hard work have contributed most to their personal success.
• Fear of failure does not top their list of worries. Twice as many business owners are not concerned about failure as are concerned about it.
• 57% of business owners believe their current success has prepared them for success in other businesses very well and that their skills are transferable.