Compass Point’s Top 10 Reasons Why Closely Held and Family Businesses Fail
Businesses struggle or fail primarily because they lose sight of the fundamentals. Here are our top ten reasons why.
- Lack of management systems
- Lack of vision, purpose, or principles
- Lack of financial planning and review
- Over-dependence on specific individuals in the business
- Poor market segmentation and/or strategy
- Failure to establish and/or communicate company goals
- Competition or lack of market knowledge
- Inadequate capitalization
- Absence of a standard quality program
- Owners concentrating on the technical, rather than the strategic work at hand
Services
Delivering financial, operational and market expertise to take your business to the next level
Compass Point is where businesses turn when they face complex matters that demand extraordinary combinations of financial, operational and market expertise. We work with business owners to align strategy with execution so they can find their True-North and achieve optimum wealth to meet their life goals.
Our professionals have a proven track record with closely held and family businesses operating in a multitude of industries, including many of the region’s respected businesses. Our success is based on our unique approach and our commitment to the Compass Point Process of
- Strategy…where we establish a road map for growth and an ownership legacy
- Growth…where we quantify financial, operational and organizational gaps and assist in the execution of tactics to achieve desired business growth
- Exit…where we plan for exit by developing the next generation and owner wealth
Our typical engagement starts with a specific project aimed at improving results, addressing a market opportunity, or solving an issue the owner is facing. Many clients maintain a long-term retainer with us as we become part of their bench strength, delivering results and maintaining focus, while keeping overhead costs down because we are not full-time employees. Other clients bring us back to tackle another specific project.
Through our work in developing strategy, financial stability, sales predictability and growth, growth through mergers and acquisition, equity investments, succession planning, and ownership transition, our focus is always on maximizing enterprise value and ensuring the company is moving in the direction that meets the owner’s and business’s goals.