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Business Resources - Expanding a Business

Why Expand?

 

Family Heritage

Family relationships are intense and deeply felt. They can tear the company apart or create the glue that makes it a joy to go to work.

Like any small business, a family business must plan, structure and develop strategies for its growth. But internal relationships complicate the dynamics.

Here are 5 basic points to consider in building a family business that you can pass on to future generations:

  1. Keep everyone informed from an early age onward, whether they're active in the business or not.

    • Develop an early pride in the family business - have children write histories, do odd jobs, participate in discussions about current business issues.
    • Talk money - don't make it a taboo. Make children understand the value of dollars spent and earned.

  2. Allow grown children to take on exclusive territories when they are ready.

    • Give them a piece of business to run by themselves if possible.
    • Encourage them to work elsewhere if they feel they need their own space - they will return when they're ready.

  3. Consider how to deal fairly with family members who will not participate in the business.

    • The business may not support all your children's families, or they may not be interested.
    • Don't let jealousies tear the family apart.
    • Consult family business experts for possible estate strategies.

  4. Prepare for your premature departure as leader.

    • Protect your legacy from the loss of its only leader.
    • Start executing a succession plan in your mid-fifties to early sixties.
    • Identify your successor. Don't make it a mystery. Who has the fire in their belly to run a vibrant business?
    • Hand over authority slowly and watch how it is handled. Enlist trusted outsiders as mentors or trainers.

  5. Hold regular family business meetings that include everyone, even non-active participants.

    • Everyone has an interest - only their roles are different.
Jump to
Economies of Scale
Sales and Exports
Why Not Expand?
Top 10 Reasons Not To Expand

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12/23/2011 13:46:44