Why is Success Planning in Family-Owned Businesses Important?
Research by Cornell economist Robert Avery suggests that nearly 70% of all family businesses fail before reaching the second generation, 88 % fail before the third generation, and only a litter over 3% survive beyond the fourth generation. Many studies point towards these statistics. Is it not scary? Can an important thing like effective succession planning be left to chance the whims and fancies of a promoter? Or does it not call for expert guidance for developing effective succession planning for ensuring profitable business continuity? Should succession planning in family-owned businesses be left to chance or choice?
The answer is evident. Profitable business continuity is so important that it cannot be left to chance and a wise choice has to be made by engaging experts for building a succession in the family business.
