Should you be running a business?

Of the material I've been reading lately, a few items overlap on the issue of what makes a good business manager/owner. Do you have the right skills to run a business? Are you the best person to run your family business?

This research conducted by McKinsey Consulting and the London School of Economics clearly identifies that the "eldest son" approach to appointing the chief of the business does not produce the best outcomes. The study of 700 midsize manufacturers across France, Germany, the UK and the US found that family businesses run by outsiders have management scores 12% higher than those firms run by family members. Plus they are more successful.

And this report from the Australian Institute of Management in Victoria identifies the areas of management skills needed by Franchisee's to be successful. It goes way beyond just liking what they are selling.

Writer Serge Sardo (Director of Business Development at AIM) points out that the most successful Franchisee's have skills across all the key management areas of - sales and marketing; strategic planning; financial management and budgeting; general management; and leadership skills.