Around the mid-2010s, Crown Castle, a tower and communication infrastructure company, decided to branch out into fiber optic networks. The idea was that fiber would support the company’s tower business. To do this, Crown Castle invested significantly into its new idea. And it invested less in its old but proven idea: towers. Nearly ten years later, and after underperformance, Crown Castle sold its fiber optics business. Here’s what family businesses can learn from Crown Castle.
Back in the 2010s, Crown Castle argued that towers, small cells, and fiber together would create a powerful, shared system. This in turn would lead to strong cash flow and higher returns for shareholders. But investors didn’t buy it.
The first takeaway for family business directors: big investments should support a clear strategy. If owners don’t understand or believe in that strategy, the investment will likely fail—no matter how good it looks on paper.
For two additional takeaways, check out “Crown Castle’s Lessons for Family Businesses.”
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