Are You Ready to Turn Over Your Family Business?
A time may come for some entrepreneurs to say goodbye to their family business and turn over the turf to the next generation. Some major concerns for many outgoing founders deal with effective transition and ensuring the continuity of the business in the years to come. In case you are just starting your family business, you might want to read some practical tips from BootStrapMe.
If you are looking for an inspiration about effective transition, maybe you can watch the Godfather movie and observe how the great Mafia godfather Don Vito Corleone guided his youngest son, Michael Corleone, to become a more powerful godfather and carry the familia to the next generation.
While you don’t need to spill blood and practice the omerta (code of silence) to be effective, the key to smooth transition is careful planning. Here are some practical tips you might want to apply:
Start Early
You should not wait for your children to finish their studies before getting them involved in your business. Expose them as early as possible by giving them small errands. This is also a good gauge of their interest, commitment, and skills about running the business. Still, it is important they finish their schooling before going full time with the family business.
As they grow older, assign them to different departments to fully understand the importance of each unit and learn the day to day operations. More importantly, this will forge a good working relationship between your employees and your children.
Talk with Your Employees
The other side of effective transition is preparing your employees for this big transition. Some employees are afraid that new management might affect their salary or even future employment. Share with them your transition plans and solicit their full cooperation.
