With family businesses there does come a time when the old guard would need to give way for the new. Family-owned businesses are often subjected to tough challenges when having to pass down the business legacy from the present generation to the subsequent one. That’s because circumstances differ, new challenges might emerge and more over interests of gen next might lie elsewhere. Statistics reveal this claim to be a fact as evidenced by a recent study conducted by Concordia University that states only 30% of primary family business pass it on to the next generation and this figure dwindles to just about 12% further down to the next generation.
Study and Related Suggestions
A study for understanding the trend of family businesses by focusing on 21 families was undertaken. All of these families had been in business for the past 11 generations. Interviews were conducted and in-depth analysis sought to understand the trend for keeping the business going from one generation to the other. Finally Peter Jaskeiwicz, a professor from the management faculty of Concordia University concluded and gave recommendations based on facts. He designed a module offering suggestions which if adhered to would make it possible for an easier and smoother transition of business down to subsequent generations.
- According to Professor Jaskiewicz, developing an interesting legacy tale based on real facts helps conveying the intended message for inspiring family members of next generation to give the business a shot. For instance it could be a grandparent who kick-started the business under very adverse conditions long back ago and how he or she managed to make it a successful venture today. Such anecdotes have a way to impact members of Gen Next.
- Instill the seed of the family business operations early on. By involving the next generation members in small tasks related to business at a young age and by providing for suitable education related to the family business helps the new generation to develop interest and pick up the tricks of the trade early on. Expose them to suitable entrepreneurial training programs and courses that will prepare them in taking over the reins of family business when needed.
- Avoid the practice of buying out non-interested family members and instead inspire to involve them
- It is believed to be cost effective to have the spouse on board of a family-run business. The business will have better control with no veered interests as both husband and wife work in unison towards the progress of a family-owned business.
Thus while it takes some time and effort to inspire future generations within a family to become involved and run the show, if done with proper foresight the end result is surely beneficial. Create a Logo + free logo maker in a unique way to portray the involvement and connectivity of family business. It should be designed in such a manner that not only members of this generation but subsequent generations taking over the running of business would relate to and remain inspired to retain the logo for good in the family business.