Why is it that so few family businesses make it into future generations? Lack of planning.
These are some random takeaways from our personal experience in putting together a strategic plan for our family business. It isn’t meant to be a comprehensive guide (this topic is well covered using other resources), but rather about the issues that a family business experiences when creating a strategic plan for the first time. More…
Are you a member of the 70% Club? Approximately 70% of family businesses don’t have formal strategic plans in place. Interestingly, 30% of family businesses successfully transition into the second generation coinciding with the same number of family businesses who have strategic plans.
Simplistically the strategic planning process in a family business is similar to non-family businesses except for having to integrate the family into the plan. That’s a big exception. It’s about getting the founder’s vision down on paper and inviting (trusting) others to be involved in the planning process in a collaborative way. It does stir up sensitive issues like sibling rivalry, family conflict, leadership decisions and estate planning. This is why some consider the planning process to be even more important than the actual final plan, because it forces the family to discuss these un-discussable issues.