Trouble in paradise

Due to its nature, sooner or later every family business will find obstacles in their way that unfamiliar companies do not normally face. Family businesses represent a high percentage of the companies that generate wealth for the economies of the world; however, because of their nature they must face situations that family businesses do not even dream about.

The following are just some of the most common problems that you will surely (if not already have) deal with in managing your family business.

Leaving the throne.

Founder, no one doubts your ability as a strategist and businessman, the show is that you started the company; it is perfectly understandable that, for you, the company is much more than an income source: it generates a very high emotional value for you, that you see it as a baby you saw born and fed until it became strong and healthy.

However, as it grows (and finally that is what every founder seeks), the centralization of decision making becomes more complicated, for the simple fact that every person deserves to retire, but to succeed, and to make the company thrives, the founder needs to leave a successor.

The founder spent years of his life, effort, belt grips and countless hours of sleep in making his company grow healthy, being the one who had the last word now of making decisions, and now, he must accept others’ critics, or that someone else makes decisions, and he must accept them? Yes, dear reader, that is precisely what every conscious founder of the passage of time and what is best for your business should do.

Deeper water.

Strategic planning is a fundamental tool that you will need to carry out growth management in your family business, of course, if you want to promote it to prosper with, without or despite the members of the family. Any organization that claims to be one should consider that the company is larger than the sum of its parts, of course every family member is important, however, for the company to move to the next level, we must prioritize their needs to the interests of individual members of the family, and act accordingly when they do not match.

For this, we strongly recommend the establishment of a Family Protocol or a Family statute, so all the company members will know exactly what is required form them, what movements have priority, and all will work to overcome the company’s needs without seeking only personal benefit.

In your understanding.

Do not you find it curious that in a family business, where trust and communication should reign, are there sometimes information and control systems that leave a lot to be desired? This is because, methods or information procedure flow, and parameter control are not well established.

We are accustomed to that the founder or manager uses his personal criterion to make decisions on the matter. Decides what tasks each member of the business family performs, assigns functions to each position according to their way of thinking, to the person in front, or even depending on the time, the amount of work and other factors.