{"id":3745,"date":"2008-08-25T13:33:00","date_gmt":"2008-08-25T18:33:00","guid":{"rendered":"http:\/\/magic1host.com\/blog\/2008\/08\/25\/how-to-make-sure-that-your-family-business-survives-and-thrives\/"},"modified":"2008-08-25T13:33:00","modified_gmt":"2008-08-25T18:33:00","slug":"how-to-make-sure-that-your-family-business-survives-and-thrives","status":"publish","type":"post","link":"https:\/\/magic1host.com\/blog\/?p=3745","title":{"rendered":"How to Make Sure That Your Family Business Survives and Thrives"},"content":{"rendered":"
by Dr. Marc R. Dussault<\/div>\n

Many people wrongly assume that being a family business has little to no impact on the running of a company. However studies have shown that family ownership and management does have a decidedly significant impact on the running of the company.<\/p>\n

In fact it is estimated that 70% of the family run businesses that fail (the average life expectancy for family owned firms is 24 years) fail because the owner<\/a>\/manager did not understand the dynamics of running a family business.<\/p>\n

There are many different views on what constitutes a family owned business. However for the purpose this article I will say that a family owned business is one that is has a majority share (51% or more) owned by one family.<\/p>\n

One of the key areas to look at when analyzing a family business is the area of conflict. With the combined emotional pressures of business goals and family issues there will inevitably be conflict in a family-owned business. It is important to educate yourself on this area as with proper guidance and processes in place, the damage that this conflict causes to your bottom line can be minimized.<\/p>\n

One of the key areas that family businesses need to look at is succession planning. This is an area that if you ‘fail to plan you plan to fail’. The best strategy is to create a process for it before any challenges arise so that you can ensure that family business has a smooth transition between generations.<\/p>\n

Strategy formulation in a family business is another key area to look at for maximum growth and effectiveness. It is crucial to get this area right as strategy is the core building block of any company. What can happen is family based dynamics and conflicts get in the way of proper creation and implementation of strategy. It’s important to not let these factors get in the way of your company implementing the right strategy if it’s to survive long term.<\/p>\n

In terms of making sure your family business or one that you work for survives the critical thing is to maintain open communication and actively plan ahead and put in processes for these issues.<\/p>\n

Obviously the level of interconnectedness and involvement of your family (or your company owner’s family) will determine the degree of importance this subject may have for you personally. However my assertion is that these are issues that all family businesses need to contend with.<\/p>\n

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About the Author:<\/div>\n
About the author: Dr. Marc R. Dussault gives expert advice on how to ensure stability and profitablity during family business succession planning <\/a>within a family-run organization. Visit the website to learn more about business and company succession<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Many people wrongly assume that being a family business has little to no impact on the running of a company. However studies have shown that family ownership and management does have a decidedly significant impact on the running of the company.<\/p>\n","protected":false},"author":837,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[77],"class_list":["post-3745","post","type-post","status-publish","format-standard","hentry","category-business","tag-business"],"_links":{"self":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/3745","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/837"}],"replies":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3745"}],"version-history":[{"count":0,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/3745\/revisions"}],"wp:attachment":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3745"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3745"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3745"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}