Family businesses are a generational project. Only if it is possible to successfully pass on entrepreneurial responsibility to the next generation will the family business project remain alive. Even though family businesses are once again proving their ability to act in the pandemic era, their most difficult challenge has , the generational change, tnevertheless has not lost any of its explosive power. It may sound surprising, but now is a particularly good time to implement the generation change. The Corona pandemic provides many reasons to actively tackle company succession right now
Giving the NEXT generation a chance
Why not elevate the next generation to the forefront of leadership at this difficult time and implement the generational shift now? The effects of the pandemic are so serious that they cannot be solved with years of experience alone. Among other things, new impulses are needed for the future. Digitalisation and globalisation are changing the foundations of business, work and life. The readiness for constant renewal and adaptation thus moves to the centre of future action. The Corona pandemic is unspokenly increasing the scope for action and responsibility in many family businesses. A test for the successors that is suitable as good preparation for the generational change.
Invoking the entrepreneurial spirit
A high level of identification with the company’s history, flat hierarchies with short decision-making processes, responsibility and sustainable management: The Corona pandemic has shown what distinguishes real entrepreneurship from management. Above all, fair and sustainable human resource management pays off in times of crisis. Your employees are your greatest asset! They engage or reinvent themselves. They develop creativity and above-average commitment that have not been seen before. Together we can already recognise today what problem there will be to solve tomorrow.
The potential for trust built up over many years with customers and suppliers as an opportunity
Even before the outbreak of the Corona pandemic, it was true that those who are prepared to assume full liability with their property and reputation build credibility and trust. In such a crisis, this leap of faith pays off especially well. This enormous trust cushion vis-à-vis customers and suppliers simplifies the process of initiating something new.
The virtual visibility of your company is now crucial. Classic ways of maintaining customer relations have completely fallen away. In times of crisis, there are hardly any customers or suppliers who are not affected by the crisis. Address them. To strengthen mutual trust, you should also address your own difficulties, such as delivery bottlenecks.
Using the moment of change for generational change
A crisis is not only an existential threat to a company, but also a time for reorientation and diversity. It is precisely now that a cross-generational approach can bring the answer to new challenges.
In a crisis, the conditions for change in a company are better than in “normal times”. Those who use these conditions in a crisis as an opportunity to improve their own competitiveness emerge stronger from this period and secure greater corporate success in the long term.
The family constitution
A family constitution is one of the most important precautions to ensure the long-term survival of the entrepreneurial family. Rules formulated in good time, set down in writing and accepted by all in the family ensure that stability is maintained, communication is secured, conflicting interests are respected and conflicts are prevented.
Of course, a family constitution is not a panacea and cannot completely rule out legal disputes within a family of shareholders. But it has been proven to lead to a significant reduction in intra-family litigation. This is precisely why we support our clients in the Corona pandemic in drafting them.
This extraordinary situation challenges everyone involved beyond what has gone before. The timing is better than it seems. So grab it. KERN Business Succession. More successful. will be very happy to support you in this!
Image: Fotolia.de
TIPS for further reading:
Selling a business - How to increase the value of your business
How does the sale of a mechanical engineering company succeed in Corona times?
