Generating about two-thirds of America’s gross domestic product, family-owned businesses appear to be thriving and remain a mainstay of the American economy.

However, that may not always be the case based on the findings of a new study, Family firms often lack written succession plans and fail to create formal strategic plans. These are two common reasons why family businesses fail. And CPAs are in a unique position to help.

“The research shows a critical need for family businesses to ‘professionalize’ their companies in three key areas: strategic planning, governance and management structures and succession planning,” according to Seattle-based wealth management firm Laird Norton Tyee in the study conducted in conjunction with Oregon State University.

Laird Norton Co., a seventh-generation family business, is the majority shareholder in Laird Norton Tyee and is a co-sponsor of the report.

Every firm in the study has at least two company officers who share the same last name. Further, they’ve been in existence for at least five years and generate revenue of at least $5 million a year.

While the survey found that many family businesses are thriving — in fact, more than 95 percent of respondents say their business will grow over the next five years — there are challenges on the horizon.

Succession of leadership will undoubtedly be a pivotal point for these companies.

• Despite the fact that nearly 60 percent of majority shareholders of family-owned businesses are 55 years old or older, only 29 percent have a written succession plan.

• Only 46 percent have plans outlining potential management roles for heirs, and even fewer (41%) have identified a successor.

• What’s interesting is that about one in four (25%) believe that the next generation is not competent to move into leadership roles.

The survey suggests that perhaps this number could be minimized by establishing a succession plan and committing to periodic updates as new generations hit key milestones. This could help identify opportunities for younger family members to pursue career paths and seek experiences that will help lead to a successful continuation of the business.

Furthermore, despite its importance, strategic planning appears to be an underutilized tool in family-owned firms. Based on the findings, just over half (54%) say they have a written plan outlining where their organization is heading, how it will get there and how it will know if it was successful or not.

While leaders of successful family businesses demonstrate a knack for instilling their personal values into the fabric of the company and are committed to having future generations participate in the business, that is not to say that a formal, written plan shouldn’t be in place. Not communicating expectations and future direction could lead a firm down a dead-end street.

“The most surprising finding of our 2007 survey is the lack of formal planning, including strategic business and succession plans. If this trend continues, it could very well have a detrimental long-term effect,” the survey stated.

In most family-owned firms (75%), strategic decisions are guided by a board of directors, an advisory board or both.

And when it comes to using advisors from outside of the family business, the most likely candidate is an accountant.

CPAs FORECAST THE FUTURE OF FAMILY BUSINESS: Join the study. Get the answers.

COMMENTS: Questions, rants or raves? Write Rick Telberg.

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