Here are some common main generational issues characteristic to family business operations and how to effectively deal with them.

– A Business Owner Who Won’t Delegate:  A very common problem in family enterprises is the owner or CEO who can’t let go.  Many owners have a strong personal connection to the business which prevents them from allowing next generations to assume more responsibility in the business and become more involved in the company’s  Marketing Plans.

• The next generation are entrepreneurs in training. The business owner should be cognizant to not hurt or stifle that potential passion, creativity and energy.
• It is common for siblings feeling they can’t realistically fill the business owner’s shoes. So it is very important for the future succession of the company that a clear path has been established which speaks to the issues of ascendancy, which includes close mentoring, training, and most importantly, delegation of responsibility.
• Consider hiring experienced Turnaround Consultants to help you work through these issues in order to develop a clear ascendancy plan that is fair, yet, challenging.  Establish clear goals and expectations so next generation family members can strive to attain goals and career growth, without stifling their passions and drive.  The Business Consultant can give valuable experience and objectivity to this often controversial issue.

– Helping the Next Generation Gain Acceptance, Respect and Credibility:  If a family member has worked from the bottom up during their formative years, gone off to college to earn their business related degree(s) and gained valuable expertise and experience working for an outside firm, give him or her the respect they deserve.

• Praise and encouragement go a long way toward family members working hard in the business, particularly if they are treated as equals.
• Be careful not to set expectations too high, they should be in line with the family member’s training, education, personality, achievements and experience.
• Expression of strong interest in the business by the next generation in necessary so the family recognizes the passion, interest level, energy and drive necessary for workable succession.
• The next generation member should know what their capabilities are and communicate that clearly to the family owner(s). For example, if the family member has an interest in Marketing, then be sure to involve him or her in the company’s  Business Plan Consulting.
• A next generation family member should conduct a self-analysis of goals and skills:
  • What are my strengths and weaknesses?
  • What areas do I need to work on or need help on?
  • What other parts of the business do I need to learn about?
  • What are my leadership qualities?  Are they sufficient?
  • What training, mentoring and continuing education do I need to achieve a leadership role in the family business?
  • Am I happy working in the family business?

• Three Stage Training Program for Family members joining the business:

  • Stage 1:  Initial learning stage to fully understand all the aspects and divisions of the Company:  Cross-Training.
  • Stage 2:  Specialization in a particular skill.
  • Stage 3:  Become a generalist, learn to manage, motivate and lead.  Need to have strong strategic Management Skills.
• The next generation should have mentoring relationships not just with the family founder/ owner/ CEO but also with experienced business people in their industry, preferably one from other family enterprises.  Long-term development mentoring support is a vital component in a next generation member’s growth.
• As previously discussed, a next generation family member should work outside the family business as this will increase his or her knowledge, experience, confidence, and most importantly, heighten credibility with family and non-family employees alike.

About Frank Goley – The Article Writer

Frank Goley has a diverse and rich experience base as a business consultant, business turnaround consultant, business plan expert, business plan writer, business coach, small business consultant, business planner, marketing consultant, online marketing consultant, seo consultant, and business plan consultant for ABC Business Consulting. Frank is considered an expert in writing, developing and implementing business plans, business turnaround plans, funding business plans, marketing plans, strategic plans and web marketing plans. Frank offers comprehensive business consulting, business coaching, business turnaround consulting, along with web seo, web development and web marketing consulting, to small and medium size companies. Frank is the author of a business plan book, The Comprehensive Business Plan Workbook – A Step by Step Guide to Effective Business Planning, and he has over 140 published articles and e-books on business success strategies. He also writes the Business Success Strategies Blog.