It may not be your first goal when you start a family business, but you probably harbor hopes of passing on a successful operation to your children someday. Creating a legacy like this can be immensely satisfying, but it isn’t always easy. In fact, the Family Business Institute researched family businesses and found that only 30 percent carry on into a second generation, 12 percent into a third and just 3 percent are still in existence into a fourth generation and beyond.
How can you defy the odds to create longevity for your family-owned business? Read on for the top five things that not only create a successful business, but increase your odds of passing it on.
1. Rethink what family means. Yes, you may have initially hoped and dreamed that your family-owned business would be taken over after your retirement by a blood relative, but be open to the “work family” that you have created and nurtured over the years as well.
2. Keep work separate. When you do work with family every day it is important to separate your work life from your private life. Family gatherings shouldn’t turn into an office round table. Work talk happens at work, and when you are socializing that topic is not allowed.
3. Follow your dreams. Part of running a family-owned business is realizing that your children or the next generation may not dream of carrying on the legacy you have created. No one should be required to go into the family business. If the next generation has other dreams, give them the opportunity to pursue those.
4. Pick the right people. When you do add employees, whether they are family members or not, be sure you are picking the right person for the job based on their characters and talents. A family-owned business is still a business and needs to be run like one.
5. Plan for the future. It may be a long way off, but there will come a day when it is time to retire and exit the business. Having a succession plan in place, early on, can help ease this transition. Helping our franchise owners plan for the future of their business is one of the many benefits that Spring-Green Lawn Care offers. Our proven business model with recurring revenue makes for an attractive option to pass on to the next generation or to sell to a new family.
Spring-Green started as a family business in 1977, and we still think of ourselves as a family of franchise owners today. Like a family, we are there to support franchise owners through every stage of their development, from start-up and beyond. Want to learn how Spring-Green can assist you in creating and growing your family-owned green business? Call 1-800-777-8608 or visit us at www.growmygreenindustrybusiness.com.