SIX WORST REASONS THAT KILL FAMILY BUSINESSES IN OUR COMMUNITIES

Families Center is built to strengthen issues related to families and in this article we will discuss on the worst reasons that kill family businesses in our communities. Below are the facts well put in their details.

Luck of necessarily education to run the business is the first reason we have found out. Many families just run businesses because they have the opportunity to get enough cash capital but without necessarily acquired the required skills to manage it.

The other reason it is because business was inherited from their ancestors and they were not told on the skills needed to sustain the business and the foundation which led to the establishment of such a business.

Fighting over shareholdings is another factor causing the business to dwindle which contributes to the lowering of the capital to run the business. In the family there is always fighting over shareholdings percentages according to their sizes and ages. The older ones claim to acquire a lion share whilst giving the young ones minimal percentages which will lead to fightings when they grow up as well.

Added reason killing Family businesses is lack of transparency that lead to theft and mismanaging of the business money. Many family members decide to be taking small amounts of money from the sales without realizing that the capital will go down at a certain point of period to come. The end result will be bankruptcy.

Poor planning in managing the business as many children do not put heart on sacrificing time to observe the operations of the business. This factor is really bad as many children do not want to work and sweat for their business instead they live it with all employees to manage it without checks and balances. This causes a lot of losses in due course.

The last reason we organized on what kills the family businesses is fighting over wealth shares when the parents die. This happens from both husband's and wife's sides. When the children are of tender ages whilst their parents die, the relatives from both sides of a man and woman come to scramble over the remains of the deceased. This ends up killing the well established businesses.

In this article families Center discussed six worst reasons that kill family businesses. We explained that some of them reasons are fighting over shareholdings percentages, lack of transparency in business dealings, lack of required skills to manage the business, and fighting over wealth after owners demised.