Why family businesses collapse or go bankrupt.
I was chilling, reading up on an article where a popular retail chain with branches all over the country, was almost closing shop due to in-house wrangles by the family. Another retail chain also found itself in the same predicament some time back so it got me thinking, Why do family businesses collapse or go broke? There are a number of different reasons that came up that I thought could be why family-owned businesses often find themselves collapsing an d going bankrupt. Some of the most common causes include; Poor succession planning When a family business does not have a clear and well-defined succession plan, it can lead to conflict and confusion when the current owner retires or dies. This can lead to poor decision-making and a decline in the business's performance. Lack of professional management Family businesses often rely on family members to manage the business, even if they do not have the necessary skills or experience. This can lead...