The Institute for Family Enterprising Blog brings you the latest in events, research and thoughts from within the nexus of family business and entrepreneurship. We will also use authors and findings from our major research arm - the STEP Project.
Small businesses face a serious threat in their inability to attract educated talent that is willing to stick around for the long-run. Family firms have a built in talent advantage to address this threat, but sadly they often fail to realize it until it is too late. Here's an insight for parents: Your children are not just wrestling with a sense of obligation like you fear. Many of them have a vision for working together and really want to come back if you would make it a real option for them. The question now is how do you make it a real option? There are four important steps to attracting your family back to the business.
First, be willing to talk to them about "the wish". It is important to know what they wish for and be ready to move from the wish stage to the vision for the future. Next, be willing to do some business planning.
The next generation wants to know where the business is going and how they are going to get there. This may entail breaking out the business plan, job descriptions and other family involvement.
Third, be willing to talk about growth and wealth creation. Successors are the "young legs" that can take the business into the future. The next generation needs to be developed as leaders which means parents need to think beyond their lifestyle goals and give successors running room. This means establishing your children as serious colleagues, including tackling the compensation issue fairly and competitively.
Lastly, be willing to invest in communication and relationship building skills. The real win in family business is the opportunity to have a relationship with your children. Don't be afraid to see working together as much about relationships and business.
So, do you have the talent for the future? Don't miss the opportunity to attract your family talent back to the family business.
Posted by Timothy Habbershon on February 21, 2008 13:57 | link
