Are you on an entre-spree to build a prodigy for your future generations? This one’s for you. Building a startup into a successful family business is not a cake walk. It involves working with your spouse, or children or your kith and kins and much more.
Before you materialise your dreams, there are certain systems you need to fix, to enable your children to run the legacy and build generational wealth.
# The Stumble stones in the journey
There is no such, successful family business which has not faced any challenges or obstacles while working with your loved ones in such proximity. It ends up messing the personal relations or the business altogether. Some common issues are:
- Not drawing the line
Draw a line between personal and professional relationships, which have a direct correlation with hampering the bond you share with your family members.
The way out is to keep your two worlds separate, discuss work only at work and be yourself in social gatherings.
- Don’t pile-up
Good communication is the key to resolve a lot of issues. Many business fails happen, due to the inability to communicate effectively among the family members for constructive work decisions.
Talk out what bothers you, don’t fester it. Many battles are won by effective communication across the table.
- Define roles
The ambiguity of job profiles within the company creates a lot of confusion and chaos. With no defined jobs, everyone just tries to pitch in, kick-starting an ego clash war.
The roles for each family member should be well defined, be it sales or marketing or managerial, etc. with such well-defined job positions, performance enhances.
- Incentives should be just
Incentives be it withdrawal from the company or securing a higher position in the hierarchy, should be just.
There should be a policy of giving salary to members instead of letting them withdraw from their will. Being a family member, there is always a bias in the selection process, but once hired the promotion should be based on performance evaluation and not on DNA basis.
# Whom to transfer the prodigy
You started your entre-journey with a vision, only to transfer the same to your kids. As parents you need to understand, all your efforts in alluring or forcing your children to take over the family business will go in vain. It will end up breeding just resentment.
- Be patient
Let your children sought the best education, help them explore their own skills and talents. As parents just encourage and provide them with the necessary resources and leave them on their own to explore. If that talent leads them back to the family business, good enough otherwise don’t force.
Out there are many deserving employees and many distant relatives who could be more qualified to run the business in a better way for you.
- If Inherited, might lose its value
Unless you are very sure, your children are ready to takeover, never leave them with an entrepreneurial estate; otherwise, it is certain to fail.
Let the kids earn it themselves. When you earn it, you value it more. Offer them ownership through sweat equity or cash investments; they would surely value it and help grow.
The fact is all families are perfect until you get to know them; including ours! Family businesses are no less than a gamble. It is worth all the hard work, if executed diligently.
Get your start-up going today to make it thrive for generations to come.
About the author
Kapila Tanwar
Limiting her in few words would be a herculean task. She Likes to add some zing to the story. When not writing, she loves to watch movie. She especially enjoys being a fashionholic. Affiliated with QuickCompany which deals in Company Registration, Company Search, Trademark Registration in India, Trademark Search and Other Legal Activities.