Family-owned Businesses Are Less Likely to Achieve Business
Success Due to Low Incidence of Strategic Planning
SAN RAFAEL, Calif.--(Business Wire)--
A new study of micro-businesses in Northern California found that
family businesses are less likely to achieve their financial goals --
and less likely to stay in business -- because they are less likely to
engage in strategic planning.
The study, by Dr. Dan Geller, found that only 10 percent of
family-owned businesses have a strategic plan compared to a 53 percent
incidence of strategic planning among non-family-owned businesses. The
Geller study, which was conducted through TUI University
(www.tuiu.edu), included 228 micro businesses with 25 employees or
less. Of those, 164 were family-owned businesses, and 64 businesses
were non-family-owned. Among the 164 family-owned businesses, only 16
(10 percent) reported having a strategic plan, whereas among the 64
non-family-owned businesses, 34 (53 percent) reported having a
strategic plan.
Dr. Geller's study found a correlation coefficient of 0.2523 and a
high significance level with alpha less than 0.01 between the type of
business ownership and incidence of strategic planning. Adding this
information to previous studies, which established significant
correlation between the practice of strategic planning and business
success, it is evident that family-owned businesses have a lesser
probability of success than businesses with other forms of ownership.
One major reason owners of family business do not engage in
strategic planning is a lack of time to devote to planning, especially
since traditional strategic planning methodologies, which were
designed for very large companies, are complex and time consuming. To
help owners of family businesses practice strategic planning, even
though they have very limited time and resources, Dr. Geller developed
the Instant Strategist(R) (www.instantstrategist.com) methodology,
which allows one to develop a valid and practical strategic plan in
less than eight hours.
Dr. Dan Geller is the president of Instant Strategist(R)
(www.instantstrategist.com), a strategy-research company established
in 1998 in San Rafael, CA, to help micro businesses succeed through
the practice of quick and easy strategic planning. The company offers
a range of planning tools, including a book, software, audio and video
CD's, to help busy micro-business owners plan their way to success.
For more information go to www.instantstrategist.com, e-mail
info@instantstrategist.com, or call toll free at 866-343-5537.
Instant Strategist, San Rafael
Dr. Dan Geller, 415-492-0506
Fax: 415-492-0504
Copyright Business Wire 2008
