Inheriting a business is called the main challenge for family-owned companies. Most owners would like their business to move on to the next generation, according to Family Firm Institute statistics, 70% of family companies do not live up to the second generation, 90% do not reach the third.
How to increase the chances of your business getting into a third of successful companies?
✔️Think about your exit strategy.
The main thing that business owners are encouraged to do is to think about a hobby or an interesting activity before the transfer process begins.
✔️Show the children what a family business can do for them.
Future successors should constantly explain what exactly is being transmitted and what specific opportunities are opening up for them.
✔️People first, then procedures.
You have to openly discuss with children their possible role in business, the conversation should be based on family harmony: communication, discussion of mutual expectations and inclinations.
✔️Leave your children free choice.
The family seeks to create a legacy and pass it on to the next generation. The desire of children to run a business should be natural. Do not force children to take over the management of the business.
✔️Fairly distribute family property and reward activity.
Most important for a successful business transfer is to o avoid conflicts, it is better to agree on the principle of determining remuneration with all family members.
✔️Let them work in someone else’s business first.
Children need to be given the opportunity to gain work experience outside the family company. This will give them self-confidence.
✔️Consider the features of children.
Family enterprises often suffer from the assumption that all differences will be eliminated by themselves, harmony will be ensured only by family ties.
“The older generation should allow the next leaders to make mistakes, learn from them and act differently. Sometimes it becomes a challenge. ”
