Running a family business without the relevant skills

For Israel Mwenda, commonly known as DJ Izrael, inheriting his father’s business was not what he wanted to do, his focus was on disc jockey (DJ).

But now at the helm of his father’s company, Solanux Systems Limited in Nairobi’s industrial area, Mr Mwenda strives to steer the family business to new heights.

Inheriting a family business and striving to keep the old flame alive even after the founders have left is a challenge to many.

“I got into our family business as a result of gradual training on assignments handed to me by my father. Out of my profession as a DJ, he would send me to his main markets in the US, China, UK and Dubai and with time I learnt the operations in the business,” Mr Mwenda says.

Although he considered it a bother five years ago and had to struggle to deliver as a DJ at the same time attend to business trips, Mr Mwenda now appreciates the role his father’s mentorship has played in his current position in the business.

Now, together with his elder brother, they are directors of Solanux Systems Limited, a business founded by his father in early 1990s.

Mr Mwenda says the transition of management of the business has been gradual and with time they have been able to fully administer all operations without much input from their father who currently serves as a consultant whenever hitches arise.

Young people are being pushed into the deep end to take over businesses after death of their parents or old age despite their lack of interest in the venture.

One of the challenges is smooth transition to management position especially if one is young than other employees or has no background experience.

“The main challenge of inheriting a family business would be if you were not actively involved in running the business maybe when the one in-charge either passed away or considered handing over. More importantly it could also be that you were involved in a different field other than the line of the business hence taking over such a business would be very difficult,” says Salim Amin, chairman of Camerapix/A24media.

Mr Amin, who inherited a family media business that was originally owned by his father the legendary photojournalist Mohammed Amin, says that prior preparation of one’s role in the new business is inevitable if any success has to be made by the incoming party.

What is responsible for the disconnects evident between two or more groups of management of the same venture? Research shows that a number of factors are responsible for either complete failure of inherited business.

Relationships between the new management and the existing clients, suppliers and employees, the process of transition especially for the new management to fast adapt to the operations of the venture among other issues like family ties, values and expectations are factor that are considered in succession.

For inherited businesses, there is bound to be challenge in bonding between the former customers and suppliers in the cases where such a business dealt with any suppliers.

There is need to engage the past management at least to a level where the incoming owners are well versed with the kind of customers in the business and the kind of treatment given to each of them.