Maintaining the family’s business name

We should all be familiar with the concept of the family business: starts out small but through generations some become multi-billion dollar companies.  World-renowned companies such as Amazon and Mattel began in someone’s garage; the Nike brand which we now wear with ‘swag’ was co-founded in 1964 by the face of the company Phil Knight.  When he steps down in 2016, his son Travis will take up his position.

This is also the story of the many convenience stores, haberdasheries, hardware and small clothing stores located in communities across the world.  Someone in the family dared to dream and started an entrepreneurial journey which is carried on today by one or more members of the family

By definition, a family business is a company owned by one or more family members and may be the oldest form of business organization in the world.

Image courtesy of www.linkedin.com

Now, not every family business will make it to the notoriety or the profits of the aforementioned companies but within their locales small family owned businesses can continue to make significant waves to maintain and build the family’s business name with these simple tips:

-          Get the children involved early – If it’s a grocery shop, let them pack the shelves, interact with the customers and learn the intricacies of the business such as inventory, accounting procedures & stocktaking.  This will teach them the specifics of the family business as well as provide them with invaluable life lessons in responsibility, general management and accountability.  Their introduction at an early stage will also help them to identify ways the business can remain relevant so that they can see increased profits for the generations to come.

-          Formalize the business (relationships) – Yes it’s your beloved child that is joining the family business but however strong the relationship, you may just have disagreements about how the business is being run.  Draw up a written agreement outlining their role as well as your expectations before they join the business to ensure that you are all on the same page.

-          But what if the children aren’t interested? – Succession planning is the next best thing.  The fact is that your children may not be interested or lack the talent to continue the business.  To ensure longevity, you are welcome to bring in talent from the outside.  These person/persons can assist in developing a more sustainable operation and establish new structures to ensure future prosperity.

-          Develop core values - Establish the business on core values such as integrity, excellent customer service, high quality products etc., This will definitely assist in carrying the business’s name through generations because customers will continually recommend family, friends, acquaintances etc., through the generations to support your business because of the core values to which the business subscribes.

Of course, this list is not exhaustive but it will go a long way in maintaining and preserving the family’s business name through the generations.