Before inducting the next generation kids into the management of a family business, many entrepreneurs spend sleepless nights as they worry about the following:
- Whether next gen kids are interested in joining the business and are capable,
- If more than one joins the business how to pick the leader,
- How to objectively evaluate their performance,
- Compensation to be paid to them,
- The reaction of other employees when next gen is inducted,
- What kind of working relationship should I have with them,
- Will it have any impact on a family relationship? Etc.
It is therefore advisable that before bringing next gen into your family enterprise, the following conditions have to be fulfilled:
- Children should not be rushed into a commitment before they are ready to join the family business.
It is advisable to talk to them directly to find out their interest. It may be in their best interest that they join the business after getting relevant qualifications and gaining adequate outside work experience.
- Business and family will be best served by sharing information and decisions taken, however unpleasant,
as early as possible. This will avoid ambiguity and set realistic standards for expectations.
- Children must take absolute responsibility in defining the future for themselves. They should be in a position to independently present a vision for the future without the parent's involvement and influence.
The younger generation should find out about the following before they decide to join the family business:
- Thorough knowledge of their roles and responsibilities
- The family and personal risks to be considered
- Understand the qualities of a good business leader
- How to take decisions as a family team
- How to maintain strong family relationships in future regardless of business
Empowering the future generation by trusting and having confidence in their capabilities is the best gift a parent can provide.