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Washington. A bitter truth often repeated in corporate corridors is that about 87% to 90% of family businesses either die or become victims of infighting by the time they cross the threshold of the third generation. But Steve Leonards, based in Connecticut, America, has introduced a model that has become a case study for family businesses around the world.

We are talking about Steve Leonard's, the American chain famous as Disneyland of grocery stores. Shopping here is a magical experience. As soon as they enter the store, customers are greeted by a robotic musical band called Farm Fresh Five, where milk carton and dairy product mannequins dance and sing. On the basis of this unique culture and unwavering love for customers, the company's 70-year-old CEO Steve Leonard Jr. has been at the helm of the company for the last 44 years.

That's why companies close down

According to renowned author and family business attorney Alejandro Cárdenas Villa, as the third generation arrives, families expand, ambitions collide, and companies are sold or closed due to a lack of professionalism.

Shine fades after second generation

Only 30% of companies are able to pass safely from the first generation to the second.
Only 13% of businesses are able to retain their shine from second to third generation.

4 year succession planning and 5 strict rules

These days, a silver tsunami is going on in America, the transfer of property and business from the aging generation to the new generation. Amid this change, Steve Leonard Jr. has created a highly disciplined four-year succession model to save his business. Under this, CEO Steve Jr.'s 41-year-old daughter Blake Leonard is going to become the new president and 38-year-old nephew Jake Tuvello is going to become the new CEO.

There are five surefire rules behind this smooth transfer, which can prove to be a lifesaver for any family business-
Job outside for 2 years after college: Children of the family must first experience the outside world so that they can understand the challenges.
Not a father, but a strict boss: Only professional discipline and performance will be paramount, setting aside family relationships at work.
Division of responsibility: To ensure balance and transparency by dividing the top leadership of the company into two parts.
Family Dialogue: At least once a year, the entire family should sit on a platform and discuss the future plan.
Starting from the ground up: Every successor needs to start from the ground up to understand the depth of the business.