The Family Business When it Reaches Maturity

Joining a mature family business can be a huge challenge for a family member. How does a family member fit well in a family company that has been in operation for many years?

Some characteristics and challenges to consider for a later stage and mature family business:

• A great policy is every family member starts at the bottom of the family enterprise and works their way up the business ladder, no matter the experience level of the family member. This can initially upset a family member, but they soon see how important it is not to show favoritism to family members over non-family employees. This policy will eliminate any issues of entitlement, favoritism, resentment or jealousy.
• Family members can sometimes be passing, interim or impermanent employees to help during seasonal demand, a particularly tough business environment or during high growth periods.  This phenomenon can increase spirit de corps, but it can also cause strife.  Again, having family meetings to decide such matters and ensuring the majority is on board with bringing in temporary family help, is critically important.
• Some family members won’t be in the business for their lifetime and often use it as a stepping stone in their career. It is important to plan for this potential personnel and key person loss and be part of the company’s management plan. Establish non-compete and non-disclosure rules upfront with family members so you protect the proprietary properties of the family business should the family member choose to move on. It is highly important to include all of this in the company planning structure.
• The issue of the family successor is huge in a mature family enterprise.  How will a family business choose its next successor?  Is there room for the next generation?  What are the expansion options for family members?  Is the Company growing enough to support new family blood?  Does the current management structure and style permit the flexibility and latitude the next generation seeks?  This all speaks to the importance of having well developed; family- contributed Business Plan in order to maintain successive-success for future generations.  This phenomenon becomes more urgent and important in maturing family operations.  We deal with this future outlook issue in subsequent section in detail, along with conflicts, limitations and issues faced by a family enterprise.

Advantages a mature stage family business savors are numerous, but the following are common, and often, keys to success:

• Each family member is contributing to the total benefit of the entire family.
• Family members can enjoy making and reaching goals together, contributing successfully to the company’s Marketing Plan and Strategic Plan.
• Be a member of a very special team which is very close knit.
• Everyone pitches in to do the hard work- getting things done, that “need doing”.
• Family teamwork translates into identifiable and quantifiable progress.
• A feeling among family that is “our business”.  It is “what we do”.  It is all just about ownership and legacy.
• Special attitude shared by family members pushes them to work hard for the success of the business.
• Bringing in new life, new skills and added experience into the maturing business.
• Mature family companies often have and keep market advantage and competitive edge as new generations often ensure the company doesn’t stagnate.

About The Article Author – Frank Goley ~ ABC Business Consulting

Frank Goley is a business consultant, business turnaround consultant, business plan expert, business coach, small business consultant, business planner, marketing consultant, online marketing seo consultant, and business plan consultant for ABC Business Consulting. Frank is considered an expert in writing, developing and implementing business plans, business turnaround plans, funding business plans, marketing plans, strategic plans and web marketing plans. Frank offers comprehensive business consulting, business coaching, business turnaround consulting, along with web seo, web development and web marketing consulting, to small and medium size companies. Frank is the author of a business plan book, The Comprehensive Business Plan Workbook – A Step by Step Guide to Effective Business Planning, and he has over 50 published articles and e-books on business success strategies. He also writes the Business Success Strategies Blog.