There are some common generational problems associated with many family companies. In this article I identify some of them and how to effectively cope with them.
– A Business Owner Who Won’t Delegate: A very common problem in family enterprises is the owner or CEO who can’t let go. Many owners have a strong personal connection to the business which prevents them from allowing next generations to assume more responsibility in the business and become more involved in the company’s Effective Business Plans.
- The second generations are “entrepreneur successors” in training and the business owner patriarch or matriarch should be very careful not to stifle that passion and drive.
- An inherent attitude that an owner’s or founder’s shoes cannot be filled is common in a family business; thence, it is vitally important to the future continuation of the business for a clear path toward ascendancy for the next generation be established through training, mentoring and delegation of responsibility.
- Consider hiring experienced Business Planner to help you work through these issues in order to develop a clear ascendancy plan that is fair, yet, challenging. Establish clear goals and expectations so next generation family members can strive to attain goals and career growth, without stifling their passions and drive. The Business Consultant can impart valuable experience and objectivity to this often controversial issue.
– Helping the Next Generation Gain Acceptance, Respect and Credibility: If a family member has worked from the bottom up during their formative years, gone off to college to earn their business related degree(s) and gained valuable expertise and experience working for an outside firm, give him or her the respect they deserve.
- Next generation members will work hard in the business if they are praised, encouraged and accepted as equals.
- Setting expectation too high can be dangerous. All expectations should line up with that family member’s education, personality, training, experience and skill set.
- A next generation member should express strong interest in the family business so the family knows of his or her passion, drive and interest level.
- The next generation member should know what their capabilities are and communicate that clearly to the family owner(s). For example, if the family member has an interest in Marketing, then be sure to involve him or her in the company’s Business Planning.
- A next generation family member should conduct a self-analysis of goals and skills:
- What are my strengths and weaknesses?
- What areas do I need to work on or need help on?
- What other parts of the business do I need to learn about?
- What are my leadership qualities? Are they sufficient?
- What training, mentoring and continuing education do I need to fulfill a leadership role in the family business?
- Am I happy working in the family business?
- Three Stage Training Program for Family members joining the business:
- Stage 1: Initial learning stage to fully understand all the aspects and divisions of the Company: Cross-Training.
- Stage 2: Specialization in a particular skill.
- Stage 3: Become a generalist, learn to manage, motivate and lead. Need to have strong strategic Management Skills.
- Mentoring relationships between the family member and the business owner and others in family based businesses, can be very healthy and really solidify the long term development necessary to the next generation’s growth.
- As previously discussed, a next generation family member should work outside the family business as this will increase his or her knowledge, experience, confidence, and most importantly, enhance credibility with family and non-family employees alike.
About Frank Goley – The Article Author
Frank Goley has a rich and diverse background as a business consultant, business turnaround consultant, business plan writer, business plan expert, small business consultant, business coach, business plan consultant, marketing consultant, business planner and online marketing consultant, and seo consultant for ABC Business Consulting. He has been helping companies to succeed for many years. Frank wrote his first business plan over twenty years ago. He is an expert in developing business plans, marketing plans, funding plans, strategic plans, turnaround plans, web marketing strategies, and project specific business plans. Frank is the author of a business plan book, The Comprehensive Business Plan Workbook – A Step by Step Guide to Effective Business Planning, and he has over 140 published articles and e-books on business success strategies. He also writes the Business Success Strategies Blog.
Related articles
- Boot Strap Fund Your Company (dohertyassoc.com)
- Develop a Good Business Plan to Obtain Business Funding (dohertyassoc.com)
- The Keys to Writing an Effective and Successful Business Plan (dohertyassoc.com)
- The Advantage of Using a Business Consultant (dohertyassoc.com)
- A Good Business Consulting Process for a Startup Company (dohertyassoc.com)
- About Venture Capital Structure and Terms (dohertyassoc.com)
- Characteristics of Successful Business Owners (dohertyassoc.com)
- Why Companies Reach Success (dohertyassoc.com)
- Guide on How to Write a Viable Business Plan (dohertyassoc.com)
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
