Is the Next Generation of Your Family Owned Business at Risk of Failure?

17 Sep 2018 Blog

70% of 2nd generation and 88% of 3rd generation Family Owned Businesses (FOBs) fail. Why does this happen and what are some of the factors that contribute to this common outcome? Family owned businesses tend to have a more inefficient and therefore ineffective management style than other types of businesses. Often,  there’s a deference to the oldest member of the family, and when the founder exits the business, his or her  internal knowledge isn’t passed down to the 2nd and 3rd generation. This can create huge blind spots in managing the business.

Family peace is often given greater weight than sound business judgement. Keeping everyone in the family happy can create a reluctance to addressing the true risks and threats to the company as well as an inability to see greater opportunities for the business.

These are just a couple of factors that can put a Family Owned Business at risk. If you’d like to learn more and get an objective set of eyes on your FOB, let’s talk!

Business pain not going away? Try a deeper dive.

12 Sep 2018 Blog

All businesses experience pain: problems or issues that are affecting the health of the organization. Often these problems are fairly easy to recognize, but if you can’t or won’t identify the underlying causes and impact, the pain will remain in place.

 

To fully resolve your pain, you have to attack it with a three-part plan.

 

  1. Identify the pain problem. This is what the problem is on the surface. It could be operational issues affecting the profit margin, the sales team not winning enough new business and/or you, the owner, not having a clear strategy and tactical plan in place.
  2. Explore the factors contributing to the problem. To do this, you must fully define the problem by answering a series of very specific questions. You need to understand how long the current issue or issues have existed and what actions, if any, have been taken before to address it. Now is also the time to come clean and admit if you’ve just plain given up on solving certain problems.
  3. Define how the problem is impacting the business. This last step is to establish how critical the pain problem is. You should take account of the impact on the business from a financial and operational perspective. Finally, don’t forget to evaluate the personal impact on you as the business owner.

 

Only after following this process can we fully understand and identify solutions to your specific business pain. Let me know if you’d like  to start curing your pain today!

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