“What are the biggest mistakes family businesses make?” was a recent discussion on Family Business United, a Linked-In Group.

Family business advisors from the U.K. and United States participated. According to this discussion the major mistake in family businesses, as seen by the experts, is poor or inadequate communication about the business and the family in the business. Participants saw a lack of planning – succession planning as well as strategic planning for the business and the family into future generations as a significant concern. Open, honest and complete communication, however, was viewed as the foundation of effective planning and for sustainable family businesses. Poor communication as well as what’s not discussed is characterized by assumptions and misunderstandings, and can lead to significant other problems. A family may easily discuss business but may avoid difficult conversations of family dynamics. This can be a cause for trouble at the time of management and ownership transition.