If you want to be a good entrepreneur, practice early - The “seniors” should plan the handover of their life’s work at an early stage.
Would you like to prepare your children for business succession?
Six steps to successful business succession in the family:
How do I turn my juniors into successful seniors so that my life’s work can be successfully transferred?
1. insight into the family business:
You should ensure early on that your children get occasional insights. This can actually be achieved quite informally by taking the children into the company from time to time, showing them the different areas of the company and simply ‘letting them explore’.
Later, when they are older, there is an opportunity to introduce the children to the company through holiday jobs. This is a good preparation for the juniors to become seniors.
2. provide first class education:
Ideally, of course, with a focus of study that is also reflected in the company’s purpose. It can make sense to study at a very practice-oriented private university with expertise abroad.
3. chase the children off the farm:
That is, to give them the opportunity to develop freely after graduation, to decide for themselves who they want to work for and where. Of course, the best thing is if they can go to direct competitors. But that will rarely happen. But maybe there are colleagues, suppliers or even customers where you can pick up a lot of knowledge for your own business.
4. make your own business sexy:
Are you afraid that your children will be spoilt by the temptations of the big wide world after studying and taking their first steps on foreign soil? Then make sure in good time that your company offers a perspective that is so interesting that your children will want to come back.
Your offspring will appear with a completely different self-confidence if they have been able to gain management experience in other companies. The acceptance of your employees is also likely to be significantly higher if everyone knows where your children have already worked and with what responsibility. Otherwise, theory and practice will quickly collide. This is always the case when you bring your children directly from university into your own company.
5. make the transition smoothly:
Think about concrete areas of responsibility that you want to entrust to your children without really interfering and getting involved in the day-to-day business.
Allow for mistakes, but not the same one twice and if it doesn’t cost too much.
Discipline yourself by agreeing on fixed communication structures and binding work procedures with your children. Even if it is difficult, stick to it yourself so that it doesn’t lead directly to arguments.
Gradually hand over more responsibility. Let go and extend the leash. Your children should also be advised to demand.
Before you plan to bequeath something to your children, treat them to the best education. It doesn’t always have to be a private university, good public universities are also suitable for the further education of juniors. However, you should always plan a stay abroad, even if it is not particularly relevant for your own company at the moment. The world is changing, and faster than we think. In addition, a stay abroad shapes people, sharpens their perception, strengthens their self-confidence and promotes their language skills.
6. formulate a clear road map and adhere to it in a binding manner:
Agree with your juniors when they will be given specific responsibilities. For example, which company divisions, powers of attorney or procuration.
Determine when the juniors will follow in your footsteps.
If necessary, set up an advisory board with an external chairperson. This will ease the tension in dealing with each other and lead to the desired success more quickly.
Tips for further reading:
Interview: Preparing the succession within the family well
5 tips for successful business succession
Free webinar on business succession
Employee information during the sale of a company
The advisory board in family businesses
Negotiating at eye level - also with corporations
Early on, you can show them the different areas and let them explore. Later on, holiday jobs are a good preparation for a successful generation change.
The juniors can learn the most from direct competition. But they can also expand their knowledge with suppliers or customers.
Define areas of responsibility in which your children are independent. In addition, create fixed communication structures and binding work processes together. Then they can hand over more and more responsibility to the next generation.
