All family businesses are not the same. The common challenges faced by each family business differ with each stage of maturity.
With each increasing stage of maturity, the leader’s span of control expands. Without efficient communication and proper governance strategies, a breakdown in the management of one of the arms in the span of control – family, business or shareholders – is likely to occur.
The inability of the leader to properly maintain control of the span of control either directly or indirectly, could lead to distress and cause the family business to fail.
Why Family Businesses Fail Infographic