How to ensure the next generation of family business owners will succeed
When the time comes to hand over the reins of their business, most entrepreneurs will opt for passing it onto the next generation. It’s no surprise; keeping the company in the hands of family is much more appealing than giving it to an outsider. But, the process of succession isn’t always a simple one.
In fact, only around 30% of businesses will manage to successfully transition from one generation to the next. For the most part, the process contains so many hurdles that companies struggle to transition without trouble, and the next generation doesn’t maintain the businesses success.
At Trusted Family, we know that this doesn’t have to be the case. With these tips, you can give your business the best chance and help the next generation find their feet.
Let Go Of Control
If you’re ready to pass on your business to the next generation, the first thing you need to remember is to let go of control. Leave those you’ve left in charge to find their own way, using their own experience and ideas to steer the company. If you don’t do this, you might end up with a power struggle that could threaten the transition
Earned, Not Entitled
Just because you run a business doesn’t mean your children are immediately entitled to a seat at the management table, let alone the owner of the business. If you pass it on to a family member who isn’t up to the challenge, you might be putting your company at risk.
So, be sure that the next generation has the right skill-set, education, and ability to manage your brand; they need to show they can do it before they get the role. A great way to make sure they’re prepared is by getting them to work outside of the business in similar apprenticeships, or work there way up through your company.
Help Them to Learn
As the current owner of your business, you have all the skills and knowledge that the next generation is going to need, which means it’s your job to teach them. Whilst outside education is also effective, there’s nothing better than learning from the founder. So, remember to take time to train the next generation. Invite them to meetings, show them how you work, and start introducing them to your clients and partners.
If you think you could use our help as you pass the reins of your business over, get in touch with our team today.