Family businesses are not easy to start, and they are much harder and tougher to grow and maintain. You will first want to make sure that you are debt free or at the very least have manageable debt. Freedom Debt Relief (check out this review) is my favorite but it is good to compare your options. Freedom Debt Relief offers a solid debt settlement service that is faster, smarter and cheaper with a low monthly payment compared to most debt relief companies. If your predecessors have managed to do it over the years, it is up to you to ensure that the family business doesn’t go under by promoting and entrepreneurial culture within your lineage. This is because, at some point in your life, you’ll want to retire. Take a look at the following tips to help you understand the key drivers of family business longevity.
Start Planning Your Business Succession Strategy Early
The earlier you start planning your business succession strategy, the smoother the transition process will be. Many consultants and entrepreneurial gurus advise their clients to incorporate the succession plan right into their original business plan.
Look At Your Family Realistically and Execute Your Plan Accordingly
Carefully examine the strengths and weaknesses of the potential successors and objectively make the best decision for the business. You may want your first born son or daughter to succeed you but they are not interested, or he/she doesn’t have the necessary business skills to run the company.
Ensure That You Involve the Rest of Your Family in Planning the Succession
To ensure the success of the succession plan, discuss it with other family members and pay close attention to the goals, ambitions and personal feelings of concerned parties. Making a succession plan in private and then announcing it to family members when it’s too late is a sure way to sow discord.
Promote Open Communication
The best way to create a safe environment and build trust among all family members is to maintain open and ongoing communication. Promote clear, concise, candid and continuous communication while conducting all business activities.
Instil Core Values
Instil core values in your family and expose your kids to the business at an early age. Let their talents blend and complement one another and create a strong foundation of communication and trust. If your children are in college, they can work for the family business part-time during breaks.
Train Your Successors
How would you expect a person to lead if you don’t prepare them to be leaders? Have your children learn essential business skills at an early age. Let them participate in various business activities; it doesn’t have to be at the family business. They can learn valuable leadership and entrepreneurial skills elsewhere. For instance, they could be a lipsense distributor. It’s a challenging venture, but it offers valuable insight and leadership skills.
Set Rules to Establish Culture
You can cultivate the desired family business culture by setting rules to align and sync all your employees accordingly. These rules should be tailored towards reducing nepotism and promoting fairness. This will help to safeguard the business’s culture and protect the entire team.
Treat Clients like Family
Use the level of care your family brings to the business to build a legacy for the business. Treat customers like family and gain a competitive edge over your rivals. This creates loyalty among the customers which will in turn amp up your sales. If your children are exposed to the business at an early age, they will adopt the same culture and cement your legacy.
When it comes to family business, retirement is not such a simple process. It not just a matter of deciding not to go to the office anymore or ensuring that you have sufficient finances to retire on. What happens to the business becomes crucial. Therefore, the question of succession needs to be addressed before it becomes an issue, and that’s where the promotion of an entrepreneurial culture in the family comes in.