Do you own a family run business? Are you finding that you are being faced with a load of changes as dictated by the shifts in the industry? Well then help is at hand from Family Business Coaching services provided by various companies across the world. The aims of this article are to make you aware of some of the best practices to adopt for family run businesses.
Of the business market, 80-90% is composed of family run businesses in America, with nearly 70% being family run businesses across Europe, so it’s not surprising that the nation’s largest network of online traders, has reported that traders with a 1M turnover has doubled in the last year with nearly 25,000 new traders singing up since the recession in 2008. Despite the fact that some small businesses have suffered during the economic downturn, many family run businesses have profited from trading online, this shows that small business start-ups are actually challenging the uncertainty in the economically.
Most family businesses owners take for granted that their children will take over the business in their absence or retirement. However, research has identified that this is not good for the individual or the family run business. This is because most family run business owners don’t actually look at the level of experience & knowledge their child has about the industry in general, they just think about retirement and immediately pull in one of their children as the next heir for the business. Therefore, under this circumstance, we would need the guidance of a Family Business Coach.
By questioning the decision they are assessing various skills and knowledge that the candidate has including a mix of industry work experience as well as willingness to learn about new things and take on responsibility fairly quickly. Just because its going to be a family member coming into the business, does not mean that they have the right level of knowledge and skills to do the job, hence it is necessary to put them under a strict training schedule, whether internal on mini projects or external via job seeking and working for a different company in the industry to build up that general knowledge and experience.
Finally, another thing that we would like you to take away today is business requirements and reasoning. If you want the rest of the family to get involved in the future business then don’t just recruit them. Asses the business and how it has panned out so far, look at what can be achieved for the future and how you will go about achieving this and then decide whether there is the need to create another position, especially if it’s going to be at managerial level.