Taking Over The Family Business Or Start From Scratch?

Many successful entrepreneurs we know either took over a family business or started from scratch. The two groups of entrepreneurs are those who are born into a family with parents who are entrepreneurs, and the other group are born into non-entrepreneur households. The three categories of companies are family firms pursuing successors that belong to the family, family firms finding successors from outside the group, and new start-ups.

Starting from scratch allows you to control the mission and vision of your business. Even when founders struggle with their first project, they come back to the drawing board and begin again. Starting from the ground up is very rewarding, but can be more stressful.

Nonetheless, empty slates carry their challenges to the table because you have to launch a rough company with punches and continuously innovate. You’ll spend many hours that can take you away from your loved ones.

Many people in business grew up watching a family-run business flourish and experienced the nuts and bolts of its activities. Having seen the value of hard work and independence, this often encourages aspiring business people to start a business.

Nonetheless, entrepreneurs always must have contingency plans despite already having learned through other people’s experiences- both successes and failures.

Inheriting businesses has its pros and cons. Fortunately, family business appears to be healthy, most of the time. Families secure themselves with a close view for threat and opportunities to sustain success in the longer term.

The traditional focus of the business, inherited from generation to generation, may also imply narrow views. Challenging the status quo can be unwelcomed by family members who are comfortable continuing the usual businesses. This is understood as families merge their home and business lives, power struggles will prove detrimental to all relationships.

Success preparation is essential, regardless of the age of the CEO and the family. Some say it should be done at least ten years in advance before retirement. Other arrangements can be made to implement their succession plans. Family business continuity is more feasible and less drama when the CEO consults qualified lawyers and advisors to determine the best point of transition and transfer of ownership. The last thing the family wants is a squabble and board tussle due to disagreements among the siblings.

You’ve undoubtedly even drawn up a few model business plans for entrepreneurial endeavours while you pursue the interests and passions. And, do the same for family business. You often risk losing the position of heir and eventual CEO when the ambitions are in contrast with the principles and resources of previous generations. Customers are returning out of love as prestige and confidence have been preserved for such a long time.

Business plans generally come in two forms— lean and conventional. Lean business plans require one hour to compose, use a simplified generic format, and outline key points. Traditional business strategies are more popular and can be more than multi-pages long, from cost analysis to advertising.

Irrespective of your dream, note that you’re going to carry on a tradition. You’re going to build your history, but it’s necessary to respect those who come before you. The insights come from decades of experience. Continue the tradition by expanding on what is already known, respectable and trustworthy. This will help to deliver business success and, over time, incorporate more of your personal ambitions.