The success of a business heavily relies on the type of business model adopted at the initial stages. Failure to create a clear business model may be the ultimate recipe for future ownership disagreements that may be difficult to resolve.
Various studies indicate that family-owned businesses tend to be more successful than non-family owned businesses. The Boston consulting group proves that most family-owned firms have a more robust long-term financial performance than their counterparts.
On the contrary, a report published by Forbes indicates that family conflict during succession remains top on the list of factors contributing to family businesses' collapse. This is attributed to a proper management model leading to succession battles.
To avert potential crises related to ownership struggles, it is essential to provide a clear business model. The question then begs, what are the most suitable business models family-run businesses can adopt? This article will focus on a few basic ownership models, which are the best for any family business.
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