The Five Insights And The Four P 's Of Small Businesses Essay
In this week’s chapter The Five Insights and The Four P’s, we read about the five insights that all family businesses have or should have some variation of and the four P’s of small businesses. These 9 things that this chapter covers are lessons learned by small businesses on the art of successful succession and survival. If a business is lucky and educated enough they will recognize and adopt these lessons early into their framework and follow them throughout their company’s lifetime. According to John L Ward these nine things are to be looked at as the foundation and framework for a lasting family business.
First we will talk look at the five insights, the first insight is “we respect the challenge”, which talks about succession. Successful family businesses respect the huge challenge of combining family and business not only for the short term but for the long term. They realize that the odds of the business lasting more than a couple generations and not succumbing to the “shirtsleeves to shirtsleeves” phenomenon is not in their favor, however instead of simply giving up they try to overcome it. One way to do this is to be aware of what other successful family businesses are doing, study up on them and see what they have done to be so successful. Another way is to have a succession plan in place that is well thought out so the next generation can be prepared for their impending position.
The second insight “family issues are common and…