After the departure of the business founder, some family members join the business very enthusiastically, but with no idea about their responsibilities.
To be successful, you must be confident in yourself and the new business, and you must be proactive with what you do and how you do it.
In order to get your business off the ground, you need to separate the professional and personal relationships well.
Running a family business after the founder’s departure can either prove to be a blessing or a double-edged sword depending on how you manage the transition process.
A successful family business can turn out to be a priceless opportunity to build something remarkable, passing down shared values to upcoming generations. But if not managed properly, it can become a source of family feuds, internal conflicts, and wounded egos within a short period of time.
After the departure of the business founder, some family members join the business very enthusiastically, but with no idea about their responsibilities. We shall go through factors to consider after succession:
Passionate: perhaps the most important characteristic for family business succession, passion is essential to any business owner, without passion, there is no reason for your work and no drive to do it.
To be successful, you must be confident in yourself and the new business, and you must be proactive with what you do and how you do it.
Keep family dynamics outside: the most common issue in a family-owned business is emphasizing too much on “family” and not enough on “business.” Hence, it leads to a situation where several companies can’t maintain the balance between the professional demands and family dynamics.
In order to get your business off the ground, you need to separate the professional and personal relationships well. Never let family disharmony tempt you into making unjust professional decisions.
Decide who makes decisions: family members who are older in the family lineage, usually tend to rebuke young relatives and employees who don’t review everything with them. This can lead to hard feelings by both.
Make it clear which big decisions can be made together because a debate over each little move will swamp the family business down to failure.
You can choose to make most decisions by consensus or votes and retain critical decisions, but be very clear about what types of decisions others can make, and then let them have it their way.
Broaden perspectives: the decision-making process for a family business after the departure of the founder can sometimes get too limited. Fresh, innovative ideas and creativity can sometimes get lost in a web of family relationships.
Seeking advice from people beside family members will help you incorporate new ideas and can also be a good way to give your business a reality check.
Regardless of whether a worker is part of the family or not, developing close ties to the company and staff can help your business progress exceptionally. Make sure that other employees do not get drowned in the opinions of your family members, and always have a voice to provide feedback.
Be open and honest with each other: every good relationship is succession on clear communication, everybody knows that. And yet it can be easy to forget this when you take the plunge into the world of business together.
Communicate, before you take any major decision, talk about it as much as you possibly can. What’s your plan? What are your expectations? What are the risks? What’s your Plan B – and for that matter, what’s your Plan C? Make sure everyone involved is completely comfortable with the basic concept.
Create a succession plan: develop a succession plan for your family business entity in order to steer away from any future hassles. The succession plan should include all the details of how you are working and when you will pass off the business to your other siblings and younger generation.
Future-oriented: because the founder’s dream was focused on moving forward, always look toward the future. Set your goals and everything you do is aimed at achieving those goals. Having a strong vision helps propel you toward accomplishment.
Resourceful: in the family business, problems aren't a matter of if, but when. Founders do not shy away from challenges or conflicts. Instead, they face them head-on and come up with a solution.
They know how to solve problems effectively. After succession, you also know how to make the most of what they have. Time, money, and effort are never used haphazardly. Everything has a plan and a purpose.
Decisive: there is no room for procrastination in business. Founders know what needs to be done and don't hesitate to make the decisions that will lead them to success. They don't let opportunities pass them by; instead, they seize the day and get the job done.
Know when to take a firm line: “Familiarity breeds contempt”, or so they say, it’s certainly possible for a family working environment to get a little more easy-going than is strictly advisable.
A little too much time socializing rather than working, not quite enough pressure, a desire to avoid conflict, all of this combined can lead to a drop in productivity as one or more members of the business gradually stop pulling their weight.
Treat family members fairly: several small companies would never be able to survive without the energy of dedicated family members and the hard work for improving the business entity. You are required to avoid favoritism between family members and other employees.
Don’t set standards higher or lower for family members than for others such as work schedules, praise, pay scales, and criticism.
You should also set a rule at family gatherings and holidays to not talk about work. If you can master this, your workplace and home will be happier places.
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