Monday, 10 June 2013

Thing 6 - Entrepreneurs don't know the most likely thing that'll bring down their business

In almost every country in the world about 70-85% of all the businesses are family businesses.

Most of them didn't start that way. They evolved organically into one, sometimes without the owners realising it, sometimes even when the owners tried to prevent it from happening.

Moreover some of these become huge. Think IKEA, Mars, Fiat, BMW, William Grant & Sons...

This isn't just academic. Most family businesses fail because their owners don't know the predictable issues that are, if not unique to family businesses, then uniquely magnified and tortuous there.

The statistics are appalling. 70% of all successful family businesses implode and disappear because of family not business issues. New entrepreneurs need to understand this and learn in advance the lessons on how to avoid such catastrophes.

So all you people out there training, coaching and mentoring new starts and entrepreneurs, get this message across to them and tell them to start studying family business theory. One day it'll save them a heap of grief, pain and business loss. I speak from personal experience on this one sadly as well as long study of the subject and working to help hundreds of family businesses.