With more and younger people taking the reins of their own family-owned business, the younger generation has more chances of making it bigger with the help of new technology and changing consumer habits.
But what exactly are the tried-and-tested secrets of successful mom-and-pop enterprises? Here are some them.
Always have room for innovation
Sometimes, the older generation does not see the need to change something if the product or service works or sell well. This is true. But that does not mean there is no room for innovation in successful family-owned and run enterprises.
For instance, if you already run a successful printing business, the younger generation needs to look for more ways on how to reel in new business in the age of e-books. Even if the sales of e-books are going down, there are always new printing technologies mom-and-pop printing presses can take advantage of.
Make succession planning and management a priority
If there are several children in the family, succession planning and management can be tricky. But this does not mean that families with one child as a successor do not deal with the same problem. Some families have successors who have no interest in the business at all.
This makes it challenging to pass on the torch to someone else. It is important for family-owned businesses to start planning and make it a serious priority. Otherwise, you risk losing everything you have worked hard for all your life.
How the family communicate and work together are vital to how the business is run. Unlike other companies, communication can be tricky among board members who share the same surname. It is important to set parameters on how open communications should be and be aware of its dynamics.
Make it a point to keep communications open and objective.
Even in the age of large corporations and startups, family-owned and run businesses can compete and become successful in their own right. The key is to manage the business well and make room for innovation and new ideas. To become bigger, you have to give new blood the chance to make their mark.