Tips for Creating a Strong Family Enterprise
Family business isn’t the same as it used to be. In the past, the most common model was for a family to focus on one business together. These days, families are more likely to branch out beyond their legacy business, working together to support one another in new ventures. A recent article for Industry Week examines what it takes for a family business to thrive. The author offers the following tips for using the “enterprise” model for your family business:
- Make sure that you’re on the same page – In the family business model, it is very important that every member share the same vision for the business. A single set of goals, purposes, and priorities is important because every move your business makes should be done in support of said goals.
- Seek ways to maintain relevancy – Change is hard, especially for deeply entrenched legacy businesses. That said, organizations that fail to adapt to social and market evolution will not remain successful. Family businesses can benefit from drawing on the knowledge of their next-generation leaders to remain relevant.
- Stay true to your family’s principles – Success in a family business is not just about money. It is also about working together toward your common goals and priorities. Family consensus is key to your success, but it takes time and hard work.
- Establish clear governance guidelines – Your family needs to work together to decide how your enterprise will be structured and governed. Create clear guidelines for who will play which roles, then stick to what you decide.
- Work together adaptively and transparently – Even once priorities and governance have been established, you still need to maintain strong focus on working together. Your family should have regular group meetings in order to keep everyone updated and to allow you to make new decisions together. Maintaining transparency and teamwork is key to future success.
For more details, read the article in full at Industry Week.