I start with the very obvious realization that in almost all countries we have many businesses that are family-owned.
And by Family, I mean businesses where 2 or 3 generations of owners or main shareholders are simultaneously ’employed’ under the same roof and at the same time. Apart from the frequent problems faced by the above companies when the children do not meet the expectations of the Parents/Owners, what happens when the Parents do not meet the expectations of the children or when the children turn out to be better professionals than the Founder?
I saw many businesses where the children of Entrepreneurs would have to get fired from their parents, but the scenario where the father would have to be fired is a little more complicated. And it is more complicated because in such cases the father usually holds all the cards, has more allies, and more ‘gravity’. So, what do we do when the father/founder has to pull aside to leave room for the new generation? Some tips for the children of entrepreneurs/founders:
You have to be patient. It does not mean that because you have finished university (with Dad’s money) you have the knowledge to take care of everything. Personally, I would exchange 2 graduates for 1 person with experience. Your father will probably have some years if not decades of experience more than you and knows things that are not taught in any school. Be patient and try to find out what you can learn, extract and absorb from the ‘old school’.
Work like Dad. It’s easy to judge, standing safe in your office, that ‘Dad is wrong’ and keep saying ‘I would do it better’ and ‘when I take over, the company will take off’. Try to work like dad for a while. Methods, sales, hours, behaviour, etc. Then you will learn a lot about his mindset and you may understand a lot about the way he works. Put yourself in his shoes for a while.
Take initiatives. Don’t be satisfied with the tasks assigned to you. Show initiative, suggest changes, make suggestions, and help when asked. For dad, you may still be ‘a baby that doesn’t know anything’. Tip: respect the hierarchy, especially with the rest of the staff, ask before you act and be ready to listen to negative comments.
Earn the trust of the rest of the staff. Help everyone else, not just the family. Most likely, they see you as the spoiled kid of the Boss. Prove to them that you see them as an important part of the team and not as mere employees. Form alliances with the base of the company to support you but also to give you a more favouring vote of confidence if and when asked.
Earn the trust of the family. If you are the son or daughter, you most probably have a mother, grandmother, uncles, or cousins. A family, just like a business, might have the obvious leader but it can also have ‘hidden powers’, other members that their opinion can go a long way. These ‘underground influencers’ can shift the power balance and offer you their winning votes or trust. Learn to read the signs behind your company’s hierarchy, and you may find secret allies.
Even if you are assigned the entire management of the business, at first you have to refuse. Change must be gradual, not total. If you don’t feel ready, don’t take the risk. Ask him to remain in an advisory role. He will appreciate it and help you even more.
Blackmail. If he doesn’t take a hint and you see that he intends to stay in the business until the end of the world, maybe it’s time to step up and demand change (or else). No one likes to be sidelined but everything ends sometimes and something new begins always.
Find another job. If you are planning to take over the family business, it is not recommended that you start working there, fresh out of school. You will be biased, either for good or for bad. Get a job, preferably in the same industry, and see how it feels and what you can learn. This more-than-common practice is one of the most dangerous and probably a company destroyer. Company founders hiring their kids before or just after graduation, with no other working experience, are digging their own grave, possibly nurturing a small dictator-to-be. If you want to take over the family business, AND be successful with it, start your career somewhere else, anywhere else, except the family business.
Changing Leadership in a family business is not an easy thing and especially when there are many children, daughters-in-law, grandchildren and so on. But this change can be made and it must be made correctly. And keep in mind that every business is a different case because, quite simply, all people are different. Be patient and one day, eventually, you will take over the business. But only if there is still a business. If the business is viable, if it survives if you are not forced to close by your competitors, if you do not give up and if you do not have inter-family conflicts.
And one last thing:
Show respect for the old guard. Even if they make mistakes, are stubborn, old school, you get my point. You are there to help them and they are there to educate and transfer what they learned all these years in business, to you.
Would you fire your father from the company he started?
