The Incorporation of Children in the Family Business 2022
Family Business: You take in that you no longer have the energy you started as an entrepreneur in your own company and need to rest at a certain age. However, although you know that it is time to prepare your successor, it is difficult to delegate and stop having complete control over your family business, which in a certain way, is also like another son.
Nobody says it is easy; the truth is that if it is necessary to prolong the life of your company and who better than the children to inherit this heritage, a source of economic stability and generational quality of life. To help you, we tell you about what you should take into account before giving up control.
The Incorporation of Children in the Family Business
The incorporation of children in your company may be part of the family protocol, but, more than that, it is perhaps the best gift and inheritance that you can leave them.
It will give you some relief, but the rest will be because you know that your business can help your next generations sustain a good quality of life and because this will allow you to rest and enjoy your retirement time.
Main Changes That Can Occur in the Family Business
To begin with, you must be aware that by delegating power and leadership to your children, changes will necessarily occur without even proposing it. To give you a model. Here are some of the changes that must happen in the transition of power from you to your children
Design and present the family protocol to your successor, as well as to partners and collaborators. In this way, you create awareness that leadership will change from your head to your children. Of course. While that happens, the future leader will have a boss, who will be you directly.
Here is an explanation about the family protocol in the company and its advantages
You must prepare now to transmit your knowledge to your child so that he can acquire strengths and the vision that you have already learned after all the hard work. Here the change and growth must not only be encouraged in your children. But you must also do it to find the best way to guide your child and let him grow.
Recognize that your child must go his own way, for the simple fact that he is an independent and unique being, just like each person. In this sense, there may be controversies between you and your successors.
However, you must be aware that each one has their style. Leadership model, and decision-making process and that this is exactly how your child will be able to develop and be recognized as a leader.
How to Know if Your Children will Prepare to Take the Reins of the Family Business?
Knowing if your child is ready to take over the family business can be the first step in the transition. To do this, give him tasks that increase the degree of responsibility as he completes them.
Tips and Recommendations to Delegate the Family Business Successfully
So that you can delegate your company to your children without significant setbacks and in a more natural way for everyone. We offer you some tips that will help you.
Train Your Child From A Young Age
Some allow their children to be involved with the family business before starting school. According to experts, this is vital. Experience is the best teacher and, in a certain way, it will instill in your children a sense of belonging and business culture until it becomes rooted in their actions and thoughts.
In the same way, it will not be difficult for partners and collaborators to associate your child with the business.
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Make It Start From The Bottom
Some say that the best way to involve and teach your child with the business is to let him learn about the company’s activity from the base positions, in operation or production.
On the other hand, some say that it is good to start from the bottom, not in the same company, but in others that are preferably dedicated to the same activity and more significant.
Thus, not only will your son expand the vision of the business, but he will also contribute his experience and knowledge to the family business.
Do You Have Entrepreneurial Leadership Skills?
Finding them who will relieve you is essential because only then will your company evolve and stay afloat, considering that times change. The company must also survive with the vision, passion, and effort that only entrepreneurial leaders have.
Accept if a Member of your Family is not Suitable for the Position
Similarly, take the time to analyze whether your child’s skills and tastes are suitable for the Position or not; because it may happen that the son you chose as a successor will not cut out to assume leadership, which is normal.
In that case, you would have to review which area you could perform better and contribute to the family business.
Avoid Corporate Paternalism For Family Business
Now, don’t fall for corporate paternalism. You have to work hard, prepare, and want to earn merit leadership. Let’s make a mistake and get up on our own, do not justify or give the idea that just because he is your son, he can assume your role.
If he doesn’t show he can do it, when can you retire? You’re not always going to be there to tell him what to do or justify it, so don’t be overprotective.
Put aside Centralization For Family Business
One of the most challenging points for you is that you have been the creator of your company and have it perfectly organized from your head is to give up power and control.
Delegating is difficult for many; however, the best way to do this is to gradually release responsibilities and increase the amount and degree of confidentiality and accountability as you trust in the results.