These 5 common mistakes could doom your family business

by January 28, 2019

January 28, 2019

Family businesses have great benefits, but they aren't without their potential pitfalls.

Family businesses are vulnerable to special weaknesses that can sink the entire enterprise. Those that fail typically run into these common mistakes.

1. Guaranteed family jobs: Some owners place family members in leadership positions, even if they aren’t qualified.

2. Appointing only family to the board: Such familiarity among decision makers can, unfortunately, let personal issues seep in.

3. Making nonfamily employees feel like outsiders: Unrelated employees often feel left out, even if it’s unintentional.

4. Overreliance on family leaders: Lack of succession planning can lead to issues when leaders step down.

5. Skipping formality: Relaxed rules cause messy outcomes.

Business Tips