Did you know that according to one statistic, only 17% of family business owners have been operating for at least 100 years? It’s no secret that running a family business is a difficult endeavor and hitting that 100-year mark is even more so.
Having an informed business plan can help families better navigate certain patterns and understand the complexities of running a family business. Doing so can help those that are in business, stay in business.
If your family has been considering hiring someone to help navigate, we’re here to help. This is where family business consulting comes in. We’ll explore 5 reasons why hiring a family business consulting firm can help your family business succeed.
1. Manage Conflict Better
Running a business is already a tough enough endeavor. Add family into the mix, and you’ve got a whole other layer of complexity to contend with. Family doesn’t always get along, nor do they always hold similar viewpoints on how to get the job done.
Family business consulting firms are able to address conflicts or tense situations with a level outlook. They are trained to manage differences and address ongoing tension from a 3rd party perspective. This allows consulting firms to do the job of dissipating any tensions that crop up while allowing the business to continue running smoothly.
2. Plan for Succession
As families grow and develop, so too do the associated structures of the family business. When it comes time for a business to adapt to the changing needs of its own structure, family business consulting services are there to help. Succession planning is an inevitable part of running a family business. Implementing a successful transition can be difficult without the proper channels of help.
Consultants can help guide the next generation of those who will be running the ship. They will be there to provide the expert guidance necessary for a successful transition.
3. Unexpected Events
We’ve all heard the phrase that nothing in life is guaranteed except for death and taxes. In the case of business planning, there are a few additional events that can be added to that list. Various incidents can alter the equilibrium of a well-oiled machine such as divorce, an unexpected illness, or legal issues.
Each of these can upset the balance of business, leading to long-term ramifications. Family business consulting firms help with addressing potential ramifications and tackling emergency scenarios before they lead to any negative, long-lasting issues for the company.
4. Preparation of Exit Strategies
When walking down the path of a potential sale of your business, having an exit strategy in place is crucial when it comes to minimizing loss. A multitude of questions will inevitably arise when selling the family business.
Consultants will be there to advise you on whether it’s the appropriate time to sell, will there be conflicts to interrupt the sale, and what will the legacy of the business look like going forward? Without a successful exit strategy, your future options might become limited. Proper preparation can help a business move smoothly from one phase to the next.
5. Facilitating Development
While there are many aspects to the development of a business, there are some key points that should be addressed appropriately during the planning process. This includes points like hiring policies, review processes, power structures, and more.
Facilitating a strong development process is what consulting services do well. Implementing a good governance strategy will help family members to understand critical roles in governing the business. Furthermore, consultants can help remind family members of the overarching goals and values that the business had initially been built from. Thus providing a bird’s-eye view of the family vision and desired outcomes.
Guiding any business to the next level is a massive team effort. Oftentimes, goals can get muddied and outcomes are driven by outdated modes of thinking. Consultants bring expert advice to the table to circumvent common obstacles. They are able to take a broad look at the overall business, assessing which parts need a little care or oversight.
Some additional key benefits that consultants bring to the table include:
- Can collect and synthesize large chunks of information
- Can determine the best environment for a business
- Empathy and discretion for family members
- Easily adaptable to change and implementation
- Extensive experience and training
Family businesses vary in size, product offerings, returns, and more. Due to the varying nature of what a business offers, it can be hard to pinpoint exactly what a consultation will look like for your business. However, there are a few common areas, such as the ones above, that a consulting firm can help with.
These areas of the business include:
- Values and aspirations
- Talent development
- Conflict management
- Legacy or philanthropy
Each sector presents its own unique set of challenges. Consultants help develop a strategy for each in order for the business as a whole to thrive. Consultants provide a bespoke strategy to best approach your family business.
Ready to Call a Family Business Consulting Meeting?
Having a fresh set of eyes on your business will ultimately help it thrive. Leveraging the strong foundations of a business against an upgraded plan is what family business consulting does best. With the right plans in place, your family business might even hit that 100-year mark.
At Positively People, we understand that each business comes with its own set of struggles and challenges. From different visions to unresolved tensions, our experts help bring your business back to task. We’ll work with you to identify gaps and plan for the future so your business can realize its full potential.
Learn more about Positively People Family Business Consulting Firm. We can’t wait to hear from you!