It is easy to think that business success is due primarily to such factors as effective marketing and careful planning. However, one of the most important factors to look at in determining your company's success is the 'family business' factor. It is essential to understand the dynamics of a family business so you can best utilize the strengths of them and also secure yourself from any of the challenges that may arise and threaten the stability of the organization.

This is very important for your company to look at carefully if it is a family owned business. This is because research shows that up to 70% of family run businesses that fail (the typical life expectancy for family owned firms is just 24 years) do so because the leaders within the company did not take into account and manage the specific characteristics of a family owned business.

What is a family business? The definition of a family owned business has been the subject of much debate however for the purposes of this article I will keep it simple. A family owned business is one in which a family own a majority stake (ie.51% or more).

Given the amount of conflict that exists within families, is it any surprise that companies that are family businesses allow some of that conflict to affect the company? This is a perfectly natural thing to happen and it is important to plan processes and systems for dealing with this before it happens, rather than wait till emotions are heated and tempers have flared.

Another crucial factor to explore is succession planning in a family business. In my research on this subject I have found this to be an absolutely critical part of ensuring a company's long term survival. If you do not put in adequate systems and guidelines around this area you could be in for serious challenges when passing the torch onto the next generation.

Strategy formulation in a family business is another key area to look at for maximum growth and effectiveness. It is crucial to get this area right as strategy is the core building block of any company. What can happen is family based dynamics and conflicts get in the way of proper creation and implementation of strategy. It's important to not let these factors get in the way of your company implementing the right strategy if it's to survive long term.

Business survival can be challenging and it can be even more challenging if there are family conflicts in place. To ensure the survival of your family business you need to make sure that you are dealing with potential issues proactively through putting in place processes and guidelines rather than waiting till challenges arise.

Obviously the level of interconnectedness and involvement of your family (or your company owner's family) will determine the degree of importance this subject may have for you personally. However my assertion is that these are issues that all family businesses need to contend with.