5 ways to keep a family business alive for generations

In running a family business every member of the family must be aware of the risk associated with the business, and abide by rules guiding the business ethics. This ethics will ensure that there is a management plan that will help keep the organizational activities running without any interruption.

Many family businesses have collapse due to the death of the owner of the business and the family members would not be able to manage the business again until it collapse and run at lost this challenges have face a lot of families for generations. To be able to overcome such challenges a family must be ready to follow certain principles before they will able to grow the business.

The following below are the major ways to keep family business alive for generation:

1.      Develop a strategic plan for the future

2.      Create a management structure

3.      Effective communication

4.      Avoid disagreement

5.      Ethics of business should be applied


ways to keep family business alive
family business house for generation


Develop a strategic plan for the future:

For any business to survive the management board or the managers of the business organization must develop a strategic plan and a blue print and how to sustain it for the future, most business fail because they lack the right plan and format of running a successful business. The family at this point most decides among themselves whether they are ready to collaborate and run the business as a family or they will share the properties and investment so that everybody will manage his or her resources as an individual firm. When they all decide to keep the business running for generation which means the business should the done as a family were by at the end of every year each member of the family has his or her share of the revenue or profit that was realize at the end of every financial statement or report. Every family member has a say and is among the shareholders in the company. When this strategic plan and decisions are made and established the future of the business will be secure and guaranteed, at this point every member of the family knows the stake he hold in the business and will like to see the business sustain for future benefit, there will unity among family members as everybody will put in the best ensure that business is going well.

Create a management structure:

The next thing to do is create and inaugurate those that will lead the business organization to greater height. This involve establishing the management board were by their board of trustees will be chosen and various department that are found in that organization will also have their directors, family members who can handle any position should be given the opportunity to serve at that capacity. At the managerial level it is advice to employ an expert who is a professional to handle the business to improve efficiency and make the business grow its peak. Management structure in every business organization is very important and is the engine room for driving success in any business one is doing, sound and efficient management team is needed to sustain and keep the business running for generations, because a structure has already being establish.

Effective communication:

Communication is the live wire of any business especially when it concerns a huge family that is trying to continue the families’ business legacy. They will need effective communication and understanding among themselves to be able to manage and survive the business good communication will encourage unity and peace among members, disputes are settled amicably to avoid malice among families, this act of brotherly love and kindness will help to keep the business foe generations because there is understanding among the family members and no want will want to see that the family business is shared but rather everybody will want to see continuity of the business for generations even when they are not longer alive but their children will still have that cordially relationship among themselves.

The ethics of business should be applied:

Business ethics are set aside rules and regulations guiding business activities in the economy for example the issue of payment of tax, customer relation, code of conduct and other related business guidelines that govern the business space. When the family agrees to establish their rules and regulations this will help in guiding them to make better choices when it comes to taking decisions that will affect the business organization positively. This ethics should applicable to all member of staff both the family members and workers that are employed in the organization to curtail the issue of excess mismanagement of funds, for example a member of a family may decide to take funds from the family account this act will be stop because there is ethics guiding the business were by there are signatories that are the only once that can have access to the funds and the decisions must be taken as a board during meetings.

Avoid disagreement:

When there is disagreement among family members it will be very difficult to keep the business for few years not even for generations because the business will be destroyed before you know it. It is encourage that will a family are in business they should try as must as possible to separate their individual differences when it comes to anything that involves the family business so as to keep the business going if not there will be problem in the future that will result in the breakdown of the activities of the business. Because of the disunity that exists among the members of the family, bring family problems into the business and personal sentiments.


How many generations does a family business last?

This question, some will argue that the live spam of a business , cannot be determine because there are unforeseen circumstances that may occur and the entire business empire will go crumbling to the ground and end up in bankruptcy. Others see a business to have a longevity of 25 years that is two decade of existence without interruption. As for this research it can be seen that the existence of a business can only be sustain when there is the willingness to cooperate among family members, and the business will last for generation to come without any interruption by either external factors or internal problems. Keeping and sustaining a business for generation is not an easy task because people change over time and may decide to go their separate way for individual quest for wealth which is a sole proprietorship and not a joint venture as family business is seen as an joint organization were everybody have a say in the organization.


What are the most important factors in keeping a successful family business?

5 ways tokeep a family business
ways to keep family business alive for generation


The family business is a cooperate organization that involves the participation of every member of the family in the decision making of how the organization should be run, below are the most important factors of keeping a successful family business.

1.      Set a good chain of command

2.      Good communication among family members

3.      Good leadership

4.      Employ professionals from outside

5.      Motivate the employees and treat them as family

6.      Future plan is very important

7.      Decisions should be taken together.


How to pass a family business to next generations

To pass a family business to the next generation is what has cost much business to go down the drain because of the problems of inheritance and who is in charge of the business. As a father and chief executive officer of your business you are suppose to have written your will and how you want the business to be control when you are gone and no longer breathing, this document will highlight the successors of the business. Making this decision may not be easy for the owner and founder of the business because he or she will have to look for a competent hand that can handle the business when he is long dead.

Your wish may be that each department in the business should be control and directed by each member of the family to provide equal opportunity and show a sense of belonging to the family members. The family member at this point must be train on how to handle such position to bring about efficiency and ultimately increase productivity which in turn will increase profit in the business, which is the aim of any business is to maximize profit for future investments.

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