In four studies, the authors tested the impact of corporate social responsibility on consumer perceptions of product quality. In one study, consumers rated red wine as tasting better when told about a winery’s charitable donation to the American Heart Association. In other studies, consumers thought various products such as running shoes, tooth whiteners, and hair loss treatments performed better when told the companies donated to charity.
Given the complex issues involved, succession planning can be very time-consuming. In some cases, it can take a year for a business owner to draft and begin to implement a succession plan.
Small-business owners tend to be very busy people, and many figure they don’t have the time to address certain long-range issues. Others balk at the notion of paying thousands of dollars in fees to financial advisors, lawyers, accountants and other professionals.
But the absence of a succession plan leaves a lot to chance. Squabbles between the heirs of a deceased owner, or between heirs and employees, can sink a business.
CNBC News, by Anna Robaton
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.
If you find yourself among the 90 percent of non-planners, I have a few business exit statistics you need to consider. Attendees at my seminars tell me they have been eye-opening topics – be sure to read them!
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.