Tag: Family businesses

Learning from Family businesses

World’s largest family businesses (87%) have clearly identified where the responsibility for succession planning lie.

Take a look at succession planning and gender diversity policies of family businesses, for playing a bigger n more strategic part in firms.
Succession planning to be an ongoing process – adequately train and prepare your successors for both ownership and leadership succession – reasonable time period 3 years.
15% of business board of directors should have voting powers.
70% of those voting members should be engaged in the business. 25% of these voting members may not be engaged in day-to-day business activities (Independent directors).
Board of directors should meet formally face-to-face 6 times a year.
Unhealthy Conflict resolving – identify hidden issues, regularly talk with members on what’s going on in the business.
Another aspect of people management in which family businesses are shining in is gender diversity…

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Success Secrets for Family Businesses

On the surface, running a family business is the same as other businesses: there are strategies, partners, suppliers, customers and products.

Yet family businesses have one more element to deal with – the family itself!

This not-so-simple element creates a much bigger deal for the family businesses to handle and how you manage that will make or break the success of the family business.

Here are some of the unique issues that family businesses have to deal with:

How to entice the next generation to take over the business?
How to teach them about business in the new world?
How to embrace the difference in ideas between current and future owners?
How to position the business so that it continues to grow in spite of the transition?
How to structure the new shareholding?
How to enhance the business value?
How to preserve the family’s wealth?
How to let go?

Each of these challenges adds much more stress and pressure onto the family business owner, making running this business much more difficult!

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Family over money or money over family?

Family businesses are the ones that are owned and managed by one or more of the
family members. These members have a significant ownership and majority of the
control lies with them…

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