Family Business Tips
A third of UK businesses are run by family members. It's tricky to define the lines between emotional attachment and colleague respect. Here a a few top tips:
Set an example for your children
Being a role model is the best example to teach your children, even if they are young adults. Think about 'who you are?' and 'where do you want to be in 5 years?' You may have put the same questions to your 18-year old, but they probably were unsure of their answers.
Strategic planning is a key success factor in business.
Planning allows you to integrate your kids' future into yours.
Don't ignore shareholders' discontent
Family businesses cannot afford to ignore expressions of discontent and dissent from their members.The leaders must establish forums when the disenfranchised can have a voice and, if they still want out, must make it easy to sell their shares.
Otherwise, the pent-up dissatisfaction may one-day explode.
Think big, think bigger, think globally
Most family-owned companies, by their very nature, find moving beyond the legacy business model a challenge. In part, this stems from the tendency towards homeostasis (a pull to maintain the constant stability of the family). However, in order to grow, they must think more seriously about outside their current markets and if appropriate, go global.
Family dynamics shouldn't influence successor choice
There are unique interpersonal issues in family businesses that make
for profound difficulties in succession, in terms of gradual change of both
management and financial control. All too often, businesses are handed over to children (or siblings) who either do not really want to run them or are not competent to do so.
In either case, when owners of businesses make succession decisions driven by a need to perpetuate their legacy (and retain control over their children), the results are often disastrous.
"I've worked in my own family-business for many years until I took the brave step to leave and strike out alone" Lindsay reflects, "however, my time there was invaluable experience and I use this to guide and mentor current clients with similar issues such as family conflict, succession planning, governance, nepotism, leadership and exit strategies."
