From my experiences as a business coach and an employee of a first generation business owner, this failure is probably much more about people failure than knowledge failure. These 7 mistakes may help you avoid the failure that many second business owners experience and achieve the business success that you desire.
- Ivory Tower Mentality - Knowledge Failure
- External Customers Relationships transfer - People Failure
- Source of Employee Loyalty - People Failure
- No Plan - Knowledge and People Failure
- Performance Savvy - People Failure
- Since businesses are comprised of people, managing people takes an understanding of what motivates people to do their very best. For example, when the current management team cries poverty and can't afford raises for the employees, but then purchases brand new expensive cars, their actions have a negative impact on the employees. Employees don't mind new cars, but do mind luxury cars.
- Assumptions - Knowledge and People Failure
- Market place
- What motivates employees
- How much time the business demands
- Owner entitlements
So if you truly want the efforts of the previous generation to be sustainable, then look to see if you as a second generation business owner are making any of these mistakes. Your small business success depends on the actions you take right now so that you are not 2 of those 3 family owned businesses that experience complete business failure.