Stepping into a family business can be both an exciting opportunity and a daunting challenge for the next generation. While some may see it as a comfortable path, it's essential to recognise that success is not guaranteed.
To thrive in a family business, the next generation should be prepared both professionally and personally.
Here are some key steps they can take to prepare for this unique career journey.
Gain Education And Experience Education is the foundation for any career, including one in a family business. The next generation should strive to obtain a relevant degree or certification in their chosen field. Even if the family business is unrelated to their degree, education provides valuable skills and knowledge that can be applied across industries. Additionally, gaining experience outside the family business can be of real value too. Working for other companies or in different roles helps individuals develop a broader perspective, learn new skills, and build a professional network. This experience can be invaluable when returning to the family business with fresh insights.
Understand The Business Inside Out To be successful, the next generation must intimately understand the family business. This means working in various departments and roles to gain a comprehensive view of how the company operates, and understanding how to read and interpret financial statements and management accounts. From the shop floor to the boardroom, hands-on experience is essential for developing a deep understanding of the business's nuances. Being brought up within a family that owns and operates a family business also affords plenty of opportunities to learn about the business. From conversations around the kitchen table to work experience during school holidays, there will be plenty of ways to soak up information, to appreciate some of the nuances of conversations, relationships within the team and to find out more about what the business is all about too.
Develop Strong Leadership Skills Succession in a family business often involves taking on leadership roles. Learning effective leadership is not just about understanding how the business functions but also about managing people and fostering a positive company culture. Leadership training and mentorship from current leaders in the family business can be immensely beneficial and those that have been successful in transitioning into a family business and stepping in to senior roles have often undertaken exterior training programmes, leadership development programmes and even invested in bespoke family business programmes too.
Communicate Effectively Effective communication is a cornerstone of any successful business, and it's especially critical in a family enterprise. The next generation should work on their communication skills, both within the family and with employees, customers, and stakeholders. Open and transparent communication can prevent misunderstandings and conflicts that might arise from the familial aspect of the business.
Embrace Innovation Family businesses must adapt to changing times and markets to remain competitive. The next generation should be open to innovation and willing to explore new technologies and strategies. They should also be encouraged to bring fresh ideas and perspectives to the table while respecting the family business's traditions and values.
Respect Tradition And Values While innovation is crucial, it's equally important to respect the traditions and values that have made the family business successful. The next generation should understand and honour the legacy of the company, which often includes the hard work and sacrifices of previous generations, whilst bringing new ideas, opportunities and ways of working to the table in a positive manner.
Seek External Advice Engaging external advisors, such as business consultants or mentors, can provide valuable insights and objectivity. These experts can help the next generation navigate challenges, make strategic decisions, and ensure the business remains competitive and sustainable, as well as introduce them to ways of handling difficult conversations and navigating their way through potentially complex relationship issues which do arise when working closely in an environment with family members.
Preparing for a career in a family business is not just about having the right last name; it requires dedication, education, and a commitment to both the family's legacy and the company's future.
By gaining experience, developing leadership skills, fostering effective communication, and embracing innovation, the next generation can ensure the continued success and growth of their family business. With the right preparation, they can carry forward the proud tradition while taking the enterprise to new heights.