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Family Business and You: Developing an Owner’s Mindset

MindsetA successful family business is one that not only profits but benefits its community. That includes both their immediate neighborhoods and the entire nation’s improvement. However, it takes an effective owner to include others in their vision. When success extends beyond your headquarters, ownership becomes a critical role to fill.

Without family business succession planning, finding the best candidate can feel exhausting. That is why we’re committed to discovering your brand’s greatest strengths. Whether you intend to promote from within or seek outside leadership, we can help. Learn how Positively People improves family brands with professional business advisors.

Reevaluate Your Family Business Succession Plans

If a brand is growing, it has an effective leader, right? Unfortunately, earlier directors and managers may not see the bigger picture. In other situations, family governance groups are slow to adopt the necessary changes. Like any brand, wise decisions don’t always seem obvious at first.

There is also a degree of skepticism or bias when choosing successors. Directors may scoff, thinking that only they know who can grow the brand. We commonly see these firms butt heads with their board members. Instead, hire us for family business consulting and get your expected results.

Redefine Your Company’s Ownership Role

As any company expands, the roles of owners and directors should be revisited. Otherwise, you could see your firm become stagnant. Most owners don’t take on as many decisions as entrepreneurs may think. They are often limited to complex problems, acquisitions, and maintaining partnerships.

Some owners, however, feel as though every choice should come across their desk. Not only is that time-consuming, but it can create a wedge between directors. As time marches forward, you need to be willing to strip some responsibilities away. Otherwise, you won’t get the sustained growth you know your brand can achieve.

How Will Generational Owners Fulfill Their Duties?

Every company struggles through the growing pains of generational owners taking over. They don’t always perform like the previous one did, creating tension. However, that doesn’t always mean that they are running things incorrectly. Many arguments can be settled through open dialogue where everyone explains their position.

On the other hand, relatives aren’t always the best candidates for the owner role either. You can find several different leadership styles emerge from various factors, such as:

  • Time Management
  • Level of Commitment
  • Emotional Investment
  • Decision Participation
  • Management Duties
  • Legacy Orientation
  • Skill Level

An effective organization is flexible to differing ownership styles and attitudes. You can’t risk squashing new ideas in favor of maintaining old traditions.

Select the Next Generation with Patience

Some companies panic when they don’t have younger members to grow as others anticipated. They may rush them to cram in specific programs or exclude them all together. If someone doesn’t display the necessary abilities now, you need to be patient. Successful companies aren’t built overnight, nor do they find new owners that way either.

Directors should also keep an open mind concerning different leadership styles. It may be jarring at first, but incoming owners may see things that others do not. One way that we assist firms is through continuity planning services. We work alongside you to reevaluate your candidates and what skills they offer.

Develop How Directors See the Company

Not all owners immediately have a mindset to match their position. That becomes especially true of those unexpectedly promoted to higher roles. Before being considered a successor, candidates should adopt an ownership mindset. That involves filtering every possible decision through the company’s vision.

Changing your thought process will alter your behavior as actions stem from this outlook. Only focusing on conduct rarely has the positive changes that are needed. Helping your owners to adopt a new mindset feels nearly impossible without help. Contact our family business advisory team and begin instilling the correct values.

Never Stop Developing Your Leaders

Both individual owners and the entire board should never stop developing. Otherwise, you may find your directors splitting over benign events and ideas. Your focus should reflect growing capital in all lines of the business. The process should restart at every stage of your firm’s life cycle.

An effective owner not only understands their responsibilities but also takes pride in them. Development should extend to improve ownership but also to grow:

  • Human Capital
  • Core Competencies
  • Corporate and Private Relationships
  • Financial Capital
  • Religious/Spiritual Faith
  • Proactive Problem Solving
  • And others.

Companies grow best by changes coming from the top, reinforcing the brand’s vision. If your firm has stopped improving, contact our family business advisors for help.

Choose an Abundance Mindset Over Scarcity

Even experienced owners struggle with viewing their resources as abundant rather than scarce. An effective leader knows that there is always capital to employ. That can look like employees who share the same passion for the brand. Eager workers help to maintain a positive attitude throughout the company.

Honesty and openness go a long way towards building trust among others. Displaying your gratitude and thanks for even small victories goes a long way. Owners who are willing to learn from others bond faster with individuals as well. Reinvest in your emotional capital and you could see growth in unexpected areas.

Let Everyone Win, Not Just Some

There continues to be a distinct shift in the attitude toward winning. The days of smarmy corporate executives acting ruthlessly is becoming increasingly limited. Instead, more brands realize that win-win solutions trump individual victories. When more of your staff feels like they’re getting what they need, they become more loyal.

Tensions often flare between those related to the family and those who aren’t. Rather than foster an us versus them attitude, include them in the company’s successes. Owners should get creative in ensuring that no one feels left out. If you can’t seem to find common ground, contact our advisors today for help.

Start Developing an Owner’s Mindset Today

Ensuring that your family company lasts for many years is no simple task. It becomes even more challenging without the right team of advisors. Even the best owner can’t manage everything on their own. Contact Positively People today to support your continued growth. Learn more about Positively People services.