One of the things I enjoy is working with rising generations in a family business. When I say rising generations I mean the children of the owners of the business who are getting ready to take a leadership role in the family business.
I’ve had the opportunity to do this several times and when the children are competent and willing to do what’s necessary to be a responsible business owner it’s one of the things I enjoy most about the work I do.
Today’s video is going to be about what it takes for the rising generation to become positive leaders in the family business. I’m going to start today with some things I’ve seen where the rising generation shouldn’t be anywhere close to the business and then we’ll move to what makes a great next generation business owner.
You know, one of the things I really enjoy doing is working with the rising generations in a family business. When I say rising generations I mean the children of the owners of the business who are getting ready to take a leadership role in the family business.
I’ve had the opportunity to do this several times, and when the children are competent and willing to do what’s necessary to be responsible business owners, it’s one of the things I enjoy most about the work I do.
And today’s video is about what it takes for the rising generation to become positive leaders in the family business. I’m gonna start with some things I’ve seen where the rising generation shouldn’t be anywhere close to the business, and then we’ll move to what makes a great next generation business owner.
So when the rising generation shouldn’t be involved, here are some things I want you to think about.
- The child has not paid their dues. And when I say not paid their dues what I mean is they’ve not really earned the right to have the job that they have in the business, and the parents have put them in a position of responsibility that they really shouldn’t have.
- Number two is when the child is given to much responsibility too soon. This is like the first cousin of not paying the dues. But they’ve paid some dues and the child is doing good in the job that they’re in, but they’re being moved up too fast before they’ve been trained and had the seasoning to take the next step.
- Number three is when the child feels entitled to be a leader. And this is a big problem, specially in third-generation, second-generation businesses. Often, children join the family business because it’s the path of less resistance. And sometimes those children, when they join the family business, feel like they’re entitled to be a leader, whether they’ve earned it or not. A really bad thing for you to do.
- And then the fourth is when the child is not excited about the business but sees it as a piggy bank and a way for them to get the best paycheck they can possibly get. Again, a really bad reason for a child to join the business, and almost a guarantee when they get into a position of real leadership or take over the business, the business is just not gonna do very well because the child is not really into making the business great.
So those are the four things I think that you have to be really careful about that you don’t let your children do if they wanna join the business.
But here’s the things that I really like about making a next generation leader who’s really great.
- Number one is the child wants to learn. Now, if your next generation is a learner and wants to learn about how to become a great business owner, a really good thing to do, what you need to do is help them find places to learn.
- Number two is when the child is humble. Now a lot of times children that join the family business have a chip on their shoulder, and there’s some reasons that they have that. We’re not gonna get into that today. But you want your child to be humble, to say please, thank you, and be appreciative of the people who are in your business today who have built the business to where it is.
- Number three is when the child understands others see them as being privileged. Now this is something that almost always happens. No matter how good your child is, no matter how humble your child is, the other people in the business will often see them as being privileged and being given special treatment over what they get, whether it’s true or not. It tends to be the way things are there. But the child has to understand that others see them as having a leg up on them. And the truth is, they do.
- The fourth thing is when the child loves the business. If your child loves your business and loves what your business does, you’re gonna have somebody who’s gonna be enthusiastic, wants to learn, and is willing to listen. Because they love the business, they wanna make it better, they’re gonna have their ideas. Their ideas will be different than yours but that doesn’t mean it’s wrong, it just means it’s different.
- The fifth thing is when the child is willing to listen to advice from other leaders in the company. Big deal. Now a lot of times I like to see the rising generation be managed by somebody else in the business besides the family. This is a really important thing.
The truth is, as you were growing up, you have family dynamics going, and then you’re gonna have business dynamics going. All I want is business dynamics going, and the best way I know to do that is to have your child to be managed by somebody who’s a leader in your business and the leader doesn’t have the same last name as you. That’s a really important thing.
- And then the final thing, which is kinda something that I did and my father forced me into when I first joined him in business was when the child gets involved in trade associations. Now often you’re gonna find leaders in trade associations in the industry, and when someone who’s 22, 23, 24, 25 years old joins that trade association, it’s pretty easy for them to get a mentor who is a wise, old beard in the business, really understands how the industry works, and can give them hints about the business that’s different than what your business is.
So that’s my list of some of the things that make a successful next generation in the family business. What are some of the things you think are important? Why don’t you scroll down and let me know in the comments below? And hey, this is Josh Patrick. You’re at the Sustainable Business. I hope to see you back here really soon.
Oh, and while you’re at it, why don’t you DOWNLOAD our Free eBook on 7 Family Business Secrets You’ll Be Glad To Know? I bet you’re gonna find it really interesting and even useful. So thanks a lot for stopping by. I hope to see you back here really soon.