Source: Huffington Post – When transitioning to President of Frigibar Industries, Inc., our family business for over 40 years, there was no succession plan. Instead of being able to jump into the position and begin working on building the company, several months were spent putting processes into place, organizing documents, and learning how things were done in the past — all of which could’ve been done months or years earlier.
Source: CNBC.com Over the past year, the unicorn club—a Silicon Valley moniker for start-ups with a valuation of $1 billion or more—has expanded at an unprecedented rate. The second quarter of 2015 was the sixth-consecutive quarter of more than $10 billion of venture capital invested in a single quarter, according to the MoneyTree report, a collaboration between Thomson Reuters, Pricewaterhousecoopers and the National Venture Capital Association.
According to Chris George from George & Company, an intermediary located in Worcester, less than 10 percent of business owners who contact his company have sufficiently planned ahead. The contact is usually spurred by an event, such as death, illness, partner disagreement, etc. His experience is pretty consistent with national surveys our company ROCG Americas has conducted over the years.
50% of business fail within the first 5 years of business and less than 1/3 of businesses survive 10 years+. Many of these companies failed simply due to their inability to juggle multiple areas of their businesses at once. The dropping of the ball when it comes to financial planning and monitoring, marketing, staffing, inventory management, order processing, customer mining and acquisition, billing, to only name a few, can be devastating to a company’s vitality.