August is traditionally the time when our Annual Guide is pulled together and gets ready for printing.
Like so many things, the process if very often more important that the actual end result. We have once again been privileged to lose ourselves in the various findings and explore what's going on for family businesses now and consider what that may mean for the future. A flavour of the key findings include:
- Communication issues
- Lack of shared purpose
- Just 4% have a succession plan
- Lack of shareholders agreements
- Vulnerability if anything happens to the key family member
But did you also know...
1. Average CEO age is 60 in a family business compared to 54
2. Average life of a family business is 24 compared to 18 years for non family
3. Average age for a founder to start their business is 40 years old
4. In nearly half of all family business collapses, the failure of the business was precipitated by the founder's death
5. 172,000 family businesses will pass from one generation to another each year over the next 5 years in the UK
We've been looking at the potential issues for Baby Boomers and the number of social generations in a business as well as the increase in blended families. From a business perspective we know that governance continues to be an issue along with skills and talent - and of course the fact that threats and competition now comes from usual places and so innovation and development is vital.
If you'd like to receive the Annual Guide 2015-2015: The Future Landscape for Family Businesses, please drop us a line