Karleb:
Entrusting business to children is always funny to me.

You can make your children shareholders and give them a chance at the big table but dashing them the company is a recipe for failure.

This isn't entirely true, if you have responsible kids. The problem is that most rich CEO has spoilt their kids, making it hard for them to operate business

Allisgud:
Most of them are the juju of that company,there are things they do like sacrificial rites,once they stop doing it the company wealth stop existing

Why doesn't it happen in oyinbo land? They don't do sacrifices abi

The founder must have shared vision that the entire employees could buy in. Processes must be standardized with clear and well spelt out authority and responsibilities that will constitute the structure of the organization.

Simple answer All business that have continued to exist/ succeed beyond their founder/s was because they had "A Succession Plan" in place.

maureensylvia:
Take a look at this

Mr Joe has been running a successful business in millions of dollars for decades with hundreds of employees working for him.

Surprisingly at his death, the business ceased to continue.

Why do you think this happened?

Share your thoughts

A case study of MKO Abiola
(He set up Abiola Farms, Abiola Bookshops, Radio Communications Nigeria, Wonder Bakeries, Concord Press, Concord Airlines, Summit Oil International Ltd, Africa Ocean Lines, Habib Bank, Decca W.A. Ltd, and Abiola football club)

Because the ceo was the alpha and omega of the business.

In the case of the example you mentioned, he was a confirmed ogboni man and when ogboni men die their money dies with them.

The thing is, the owner or CEO is the one who knw what he/she did to grow or build the business to that top level. When he or she stop doing that thing that grew and maintain the business, it tends to collapse.

For example, a business owner or founder will think well before spending money from his business, but that may not be the case for his successor. Even when they try to be wise in spending, if won't still be like the owner's/founder's way.

Others(replacement, successors etc) may try best but it may not be enough to fit in to the other or the person that started it shoe.

That is why most successful business owners set their successors up in their own business(the successor's personal business, they may use the founder's business name, if they like), from there they can gradually integrate them into their(business owner's) business when they see they are capable.

ghiloman28:
When they can’t continue with the Ritual

So true for most African Businesses. It’s surprising that a lot of persons don’t take this into consideration when evaluating the crumbling of a business empire upon the founder death.

When a business is run as sole proprietorship,that's the number disadvantage as we were taught in Economics back in Secondary School.

maureensylvia:
Take a look at this

Mr Joe has been running a successful business in millions of dollars for decades with hundreds of employees working for him.

Surprisingly at his death, the business ceased to continue.

Why do you think this happened?

Share your thoughts

A case study of MKO Abiola
(He set up Abiola Farms, Abiola Bookshops, Radio Communications Nigeria, Wonder Bakeries, Concord Press, Concord Airlines, Summit Oil International Ltd, Africa Ocean Lines, Habib Bank, Decca W.A. Ltd, and Abiola football club)

method of getting job(man know man)
2. Government favour
3 not entrusting major decision to the hands of ur managers
4.bad children
5.children lack interest in the business
6.member of a particular group

fewture:


So true for most African Businesses. It’s surprising that a lot of persons don’t take this into consideration when evaluating the crumbling of a business empire upon the founder death.

Wack and lazy people's reasoning, although people do that but it is not everyone that does it.

Let me use myself as an example, I do imagine if others can run my business the way I do.

Running a business successfully from humble beginning or scratch(low level) to that top level is not beans.
Many years ago, I do ask my dad why he gives certain customers credit facility in his business because I was also managing it then, but he will just laugh it off and that is it.
Sometimes, he will come and check the prices we gave to certain customers, and at times he will collect the invoice and edit or fix new prices.
We will be like "Dad, why did you reduce the price from what we gave him/her, after he has accepted" and all that.

Let's say he travels out or decided to hand over the control of the business to me fully and retire, with my knowledge then, I will stop giving those people credit facility etc.
What do you think will start happening to the business when I start doing that.

Fast forward to now, I do the same things in my business and now understand better.

That's Sole proprietorship for you.

E be like this OP no go secondary school. Or him no dey attend business studies class dat time.

maureensylvia:
Take a look at this

Mr Joe has been running a successful business in millions of dollars for decades with hundreds of employees working for him.

Surprisingly at his death, the business ceased to continue.

Why do you think this happened?

Share your thoughts

A case study of MKO Abiola
(He set up Abiola Farms, Abiola Bookshops, Radio Communications Nigeria, Wonder Bakeries, Concord Press, Concord Airlines, Summit Oil International Ltd, Africa Ocean Lines, Habib Bank, Decca W.A. Ltd, and Abiola football club)

Lack of secession plan.

maureensylvia:
Take a look at this

Mr Joe has been running a successful business in millions of dollars for decades with hundreds of employees working for him.

Surprisingly at his death, the business ceased to continue.

Why do you think this happened?

Share your thoughts

A case study of MKO Abiola
(He set up Abiola Farms, Abiola Bookshops, Radio Communications Nigeria, Wonder Bakeries, Concord Press, Concord Airlines, Summit Oil International Ltd, Africa Ocean Lines, Habib Bank, Decca W.A. Ltd, and Abiola football club)

/
Look at Femi Otedola and DJ Cuppy.
Can't you predict the future?
If you don't teach them how to fish, they will waste whatever legacy is bequeathed to them.

Adenuga and many others seem to be doing it right.

/

God Is Good Motors is an exemption

Lexusgs430:
Nigerian factor ........

Once the CEO kicks his bucket, his politically exposed thieves, simply hit the kill switch, eventually starving the business of funds + secretive business arrangements of the CEO ..........

I was looking for this point.
You hit the nail on the head.

dazzlingd:
Sole proprietorship

Diamond Bank wasn't sole proprietorship.
The owner children mismanaged the bank nevertheless.

AllDModsAreMaad:


Wack and lazy people's reasoning, although people do that but it is not everyone that does it.

Let me use myself as an example, I do imagine if others can run my business the way I do.

Running a business successfully from humble beginning or scratch(low level) to that top level is not beans.
Many years ago, I do ask my dad why he gives certain customers credit facility in his business because I was also managing it then, but he will just laugh it off and that is it.
Sometimes, he will come and check the prices we gave to certain customers, and at times he will collect the invoice and edit or fix new prices.
We will be like "Dad, why did you reduce the price from what we gave him/her, after he has accepted" and all that.

Let's say he travels out or decided to hand over the control of the business to me fully and retire, with my knowledge then, I will stop giving those people credit facility etc.
What do you think will start happening to the business when I start doing that.

Fast forward to now, I do the same things in my business and now understand better.

Wisdom

Igboid:


I was looking for this point.
You hit the nail on the head.

The sad thing is, other rogues don't learn ....... They keep repeating the same thing ........

Family members, would also start fighting for the remaining bones, pots and pans ...........

Way4orward:
That's Sole proprietorship for you.

E be like this OP no go secondary school. Or him no dey attend business studies class dat time.

I expected you to give an intelligent answer... This is not a kindergarten thread.

REALretep:
I love threads like this. maureensylvia thank you for such an intellectual topic
I'm not really into business and so may not have the requisite experience to give an informed opinion.
Nevertheless I think a lot of things determine the longevity of a business entity. A few that comes to mind are below:
First is luck.
Second is how visionary the founder is and the extent to which he impacts his vision into others.
Third is personnel... how careful the founder and his successors choose employees and people they works with.
Fourth is how large the network of the founder and his successors are... the larger one's network, the better one can receive help from one's network during times of adversity

I appreciate

Jokerman:
Except he doesn't have serious children to follow the footsteps....

Otedola comes mind... Daughter is more interested in music than running his biz.

ZINNYBANKS:
I think it only in Nigeria . the CEO of Ford motors, KFC, and apple are dead , but take a look at their businesses today.

Their businesses run because the people working there do not have the Nigerian mindset of cashing out and killing the business

Lack of vision and discipline by inheritorsLack of vision and discipline by inheritors...

iLoveYouToo:
He wasn’t sharing trade secrets

Humans and treachery are one. So a smart business man would compartmentalize the organization. Those form Department A can not understand how Department B operate.

From experience, the CEO is the only visioner. Other executives might just be working to get paid. Passion, value, consistency and hard work are what keep business going.

maureensylvia:
Take a look at this

Mr Joe has been running a successful business in millions of dollars for decades with hundreds of employees working for him.

Surprisingly at his death, the business ceased to continue.

Why do you think this happened?

Share your thoughts

A case study of MKO Abiola
(He set up Abiola Farms, Abiola Bookshops, Radio Communications Nigeria, Wonder Bakeries, Concord Press, Concord Airlines, Summit Oil International Ltd, Africa Ocean Lines, Habib Bank, Decca W.A. Ltd, and Abiola football club)

faceland:


Humans and treachery are one. So a smart business man would compartmentalize the organization. Those form Department A can not understand how Department B operate.

There’s a downside to this, the fortunes of the establishment could nosedive when the key person takes a bow.

There is what will called Oki ite.

FalseProphet1:
Lazy and wasteful children who aren't ready to make their father's sacrifice but are eager to lavish his millions.

Ekene Dili Chukwu...I cried when the owner died cos I knew the company wouldn't last 6 months before crumbling and I was right.

Most parents spoil their kids so badly that they have zero knowledge of what operating a business is all about.

This I have seen.

Not just business alone Boss...a top army officer died in Abuja and his children invited their own friends to come celebrate with them
Why Cos, they'll collect the gratuity et al

One of the problems Imho is the African expectation that the child will continue the business. Business acumen or passion is not hereditary.

So there is no proper succession plan in place.

And As others have said too many naija businesses are based on patronage and relationships.

yrhuhfy113:


They were not groomed.... they were just figure heads.

when you say "groomed", what does it entail? how did that affect abiolas businesses?

XXCASH:


No succession plan. Simple

so you think Abiola didnt have a succession plan?