But we need to listen to them and not force a future in the company over their heads.
It's a fact. Very few family businesses make it to the 5th generation. And it's no surprise that generational change is critical to the company's future prospects.
Not all family businesses are best left in the family. But if you run a family business and you want to make sure that the next generation and the business have a fair chance at a shared future, there are some specific things you can do:
✅ Make time for your children so that the family business isn't remembered as an evil time-waster, but perhaps as a place where they could visit and possibly even have fun.
✅ Tell your children about the company, what it contributes and what it means to your family and others.
✅ Give your children a part-time or student job in the company so they get to know it and its values from the inside and develop a sense of belonging.
And when they get a little older:
✅ Don't give young people the feeling that they have to go into business for you or their ancestors. It can create a heavy sense of duty, and that's not necessarily a good incentive to get involved in a company.
✅ Never assume that succession is a matter of form, because it can be a surprisingly difficult process in which everyone needs to clarify their future roles both together and individually.
✅ Listen to the next generation and value their input, even if you don't always agree. If you want them to find their feet and take the company forward safely, you need to trust them and show that you do.
Your children may find that they would rather do something else than continue or own the business.
But by giving them the opportunity to come to that realization themselves, you've ensured that you're not the one pushing them away from a future in the family business.
You're actually doing something else by inviting the next generation in long before you let go of the reins yourself.
You create a situation that can make it clear in a timely manner to everyone, including the next generation themselves, whether the next generation is suitable to take the company forward or whether everyone would probably be happier with different roles.
