How to Prevent Your Family-Owned Business from Failing

Which hotel is considered as the largest lodging company in the world with some 2,600 owned or franchised properties, operating in 65 countries and is worth some $ 8.441 Billion U.S dollars? That's right; it's the Marriot chain of hotels.

The Marriot group started out as a D.C root bar stand in 1927. The company was started by the couple J. Willard and Alice Marriot. Later on, the company expanded into hotels and restaurants. Currently, their sons run the company's two main divisions, Marriot International and Host Marriot luxury hotels division.

What does it take to become a Marriot? Are you willing to become a Marriot? Find out more on the next tip.

Tip No. 6 - Diversify

Family business often fails because they just confine themselves to the industry where they started.

While it is true that the core business should be given importance, as this is the bread and butter of the family business, other businesses that are connected to the core business must be considered. Most big family owned businesses are a group of companies involved in several other businesses that are often related to each other. Some of them even operate on business areas that are not related to each other. But there is an advantage if the business is related to each other. For example if the family's core business is a trucking company, then perhaps another avenue of business wherein the family can engage in would be a truck repair shop or a gasoline station.

Diversification is a way of not putting your eggs in the same basket. If one industry fails or there is a crisis that affects the core business or the other businesses then the entire family business empire will not suffer and collapse.