Rich Two Generation: Secrets Of Business Heritage

According to statistics, the average age of the rich in 2008's "Hu Run rich list" is 48.3.

According to Chinese tradition, the age of 60 is the age of retirement.

Therefore, it is foreseeable that in the next 5 to 10 years, China will soon usher in the peak period of the pfer of private wealth from the first generation to the second generation.

How to make wealth develop in the second generation, or at least do not waste it, will become a topic of concern.

30 years ago, I would like to talk about the two words of "inheritance". I am afraid many people will not think of the intergenerational inheritance of personal wealth, because most of the people at that time did not have much wealth to leave for future generations.

But 30 years after the reform and opening up, when our society experienced the explosive growth of personal wealth, it was found that those who had been at the forefront of market-oriented reform had accumulated huge personal wealth, which had far exceeded their own rich life needs.

In the face of the wealth that life does not bring and never die, the first rich people of contemporary China naturally think of pferring wealth to their next generation.

The wealth inheritance will enter the peak period, and the wealth will be left to the children. Only a simple legal procedure can be done.

But the question is how to effectively inherit wealth.

For the first generation of rich people, their highest requirement is to let wealth grow in the second generation. The minimum requirement is not to let wealth drain away at an abnormal speed in the second generation.

Because of the systematic pformation of the industrial and commercial enterprises after the founding of the people's Republic of China, the family businesses that existed in Chinese history have disappeared. Only a very small number of time-honored private enterprises can be traced back to the 1978, so today's private enterprises are almost entirely new.

For the generation of the riches of the generation, most of them did not expect to accumulate so much wealth today when they started business from scratch.

When they realize the importance of this problem, they find it embarrassing to find that modern China, which has experienced many social upheavals, has not yet given birth to an example like the Kennedy family or the Rockefeller family. In other words, modern China lacks the successful cases of generations of wealth pmission among generations.

According to statistics, the average age of the rich in the Hurun rich list in 2008 is 48.3 years old, and the rich are over 50 years old.

According to Chinese tradition, the age of 60 is the age of retirement.

Therefore, it is foreseeable that in 5 to 10 years, China will soon usher in the peak of the pfer of private wealth from the first generation of entrepreneurs to the second generation of practitioners.

Therefore, wealth inheritance will naturally become the focus of the first generation of rich people.

This problem is particularly evident in the southeast coastal areas such as Zhejiang and Guangdong, which are most active in China's private economy and have the most popular folk wealth.

Chen Ling, director of the Family Business Research Institute of the City College of Zhejiang University, once conducted an enterprise survey in 8 counties and cities in Zhejiang. He found that among the 312 enterprises surveyed, more than 2/3 were family businesses. "The data released recently by the Wenzhou Banking Regulatory Bureau show that only 150 billion yuan of private capital is available in Wenzhou alone. The huge scale of the capital will be pferred between generations."

In the next 10 years, there will be more family businesses to hand over than ever before, and the question of wealth inheritance and pfer will become more and more prominent, "Chen Ling said.

The passage of wealth is a worldwide problem. When it comes to wealth inheritance, we naturally think of the old saying in China: "rich but three generations".

The logic behind this sentence is very simple: the first generation of entrepreneurs, who achieve their career through entrepreneurship, must be inseparable from the pioneering spirit of hard work.

Once you get rich, you naturally want your children to live a better life.

In particular, the traditional concept of Chinese parents wants to leave their hardships to themselves and leave happiness to women.

The so-called "hardship can not be bitter children", so it is unavoidable to make their descendants form a life of good living habits. The driving force and the spirit of hard work are often less than the first generation, and wealth can only be reduced.

Unfortunately, those who have failed in their families will be lavished by their unusual speed.

In fact, the problem of wealth generation represented by family businesses not only plagued the rich people in China, but also has always been a worldwide problem.

Portugal also has the saying that "rich peasants - noble sons - poor grandsons". Germany has three words "creation, inheritance and destruction", which are used to represent the fate of the three generation.

In the United States, only 30% of family businesses exist in the second generation; only 12% exist in the third generation, and only 3% in the fourth generation and four generations.

Although the second generation is not always a black sheep, it is easy for the black sheep to emerge in the second generation.

A survey of a social institution in the United States shows that the 70% bankrupt of the United States is the second generation.

The reason for the bankruptcy is not too much material resources, but rather too abundant or even excessive supply from childhood.

But people will be happy only when supply and demand are balanced. Excessive supply can not satisfy them, but make them lose.

Because there is no demand, there is no motivation.

When there is no need for them to win by their own efforts, their life is short of goals and no longer willing to work hard.

And this mentality eventually led them to the abyss of bankruptcy.

In other words, for the "second generation", wealth may be a step up to help them grow on the basis of their fathers, or it may be a narcotic for them to lose their motivation.

In the second generation, the advantages and disadvantages of the "two generations" coexist in order to study the issue of wealth inheritance, we must have a clear understanding of the second generation of the rich families.

Although the inheritance of wealth is a worldwide problem, the second generation of rich families is not without merit. They often have their inherent strengths and weaknesses.

The second generations of rich families often receive a good education and most people can study abroad. The international education they accept provides them with a broad vision of globalization and an advanced mode of thinking, which can help them be keen on the development trend of the Cha Jue world and seize the fleeting business opportunities.

Their parents' funds, experience and networks provide excellent conditions for their entrepreneurship.

As we all know, the biggest difficulty faced by young entrepreneurs is the lack of the first start-up funds, creativity and no force to turn them into productive forces, while the second generation of rich families need not worry about funding problems.

At the same time, parents' experience in shopping malls can help them to take a lot of detours on the road of entrepreneurship.

In addition, the relationship between parents has accumulated rich resources for the second generation.

In addition to the lack of wealth motive power in the second generation, the lack of frustration education is also a fatal injury to them.

Compared with their peers, they were placed on a high starting point from childhood. Most of them were further educated by their parents sent to famous universities abroad, and after graduating from school, they became the left and right hands of their fathers directly.

A high starting point will help to take a long view, but it has failed to experience failures and setbacks after entering the society like other peers. It has not experienced the ups and downs at the bottom of the enterprise, and has not experienced various kinds of bumps and drenches in the society. Therefore, it is very difficult to succeed in family business.

It is the greatest aspiration of the rich to spread wealth to the hands of the second generation and develop healthily in a sustainable way. Specifically, it is divided into inheritance and inheritance of property. Relatively speaking, the inheritance of assets is easier. In addition to giving assets directly to their children, financial experts also suggest that we can learn from the way of property trust adopted by western developed countries to ensure the safety and sustainability of property pfer. We will introduce this method in detail in the next article.

Although the business of personal property trust in mainland China has not yet been carried out, parents can learn from their core concepts to build a trust model designed by themselves.

As for the inheritance of career, its difficulty and complexity are much more difficult and complex. It requires parents to take into consideration the interests and interests of their children and their special abilities. In the early stage, they should consciously strengthen their training in many aspects, including giving them a healthy and healthy outlook on life, having the psychological endurance to resist setbacks, and having the motive force of continuous operation.

Of course, many times, property and business are hard to separate. Property is the result of business operation. The sustainable development of property is a continuous guarantee for property.

In this case, the experts suggest that parents should also act as a portfolio of property inheritance as part of their portfolios. Some of their wealth will be fixed by property trust, and the other part of the wealth will be retained in the continuing business. This can guarantee the inheritance of wealth in two ways, and decide where they are in the enterprise according to their actual ability, whether they are directly involved in the operation or simply take dividends as shareholders.

Since the inheritance of wealth is a worldwide problem, we need some special means to solve it. In this respect, the innovation of financial instruments will also have great room for development. I believe our financial institutions will not miss the opportunity. In the near future, there will be some financial instruments that are suitable for Chinese characteristics.