Did you know that 30% of family-owned businesses last until the second generation, and only 12% will make it to the third generation? Considering that family-owned businesses are responsible for creating 78% of all new jobs in the United States, it’s critical to take care of them and ensure their longevity.
If you are running or working in a family business and are concerned about its future, then a family business advisory board can help. Keep reading to find out all the benefits of using family business advisory services.
Provides Expert Supplemental Advice
There’s only so much information and expertise that family members running a family business can bring in. After a while, you are bound to hit a wall. This is even more true in the modern age where information accumulates at the speed of light and no one person or family can keep up with it.
A family advisor board is filled with experts who can help fill in any gaps in knowledge and expertise that the family business might have. Since they are outsiders, they can supplement your family’s skill set and no one will feel offended by it.
Helps Move the Business Forward When Family Members Disagree
No matter how well your family members get along, there are bound to be situations where conflicts arise. This might be because an emerging opportunity has risen and every family member disagrees on how to proceed with it.
When this happens, you could end up in a standstill situation where everyone sits around and waits for the other party to give in. This could mean that you end up missing out on that great opportunity because you waited too long.
A family advisor board can step in during these disagreements and help mediate a solution or bring in some new perspective on why one side should be chosen over another. This way you don’t have to wait for eons for heads to cool down, and you won’t miss out on valuable opportunities.
Provides an Objective Voice
If you have been working with your family members for a long time, you might have realized how subjective you are about each other’s opinions and decisions. Tempers rise and disagreements happen not because the person did something wrong, but because of past hurts or resentments.
There’s nothing much you can do about the past, but you can use a family business advisory group to bring in that objective perspective. One that will not be swayed by emotions, but will look at the situation with a lucid eye.
Brings in New Opportunities and Validates Them
Another major advantage of having a family business advisor service is that all those folks have connections of their own. This further expands your business network.
It also means that they might hear of a great opportunity and bring it to the table, which you would never have heard of merely because you don’t hang out with the same folks.
Not only that but because you have friends in high places, you might be able to get a sneak peek into something that could entirely change the paradigm and profit structure of your business.
Solves Complicated Financial Issues
Just because your family started a business doesn’t mean that you are experts at everything necessary to keep your business going strong. The world is becoming more complicated. Some financial problem might be thrown your way that is too complicated for your family business to solve on your own.
When that happens, instead of fumbling on your own, a family business advisory board can help you. They might even help you turn the problem into a golden opportunity. But you will never know if that possibility exists if you don’t have these expert advisors sitting in on your meetings or giving you advice.
New Idea Generation with Innovative Thinking
There is a reason why the adage, ‘two heads are better than one,’ exists. Two heads can come up with more ideas than one, and two heads can also make decisions on these ideas that are better than just what one person could.
Your family business might stagnate if you only rely upon family members to come up with new and innovative ideas.
You are smart folks. That’s why you were able to create a family business that’s so successful.
But there’s no need to ride on this success forever. Choose family business advisory services that can come up with out-of-the-box ideas that will help your business flourish even beyond the third generation.
Have a Sounding Board for Any New Ideas
What do smart business people do to boost their business success? They surround themselves with even smarter people who can give them advice and act as a sounding board for any new ideas that might be floating around.
This way if you do have any emerging opportunities popping in, you can use your family business advisory board to see if that idea makes sense for your business or not. It’s hard to do this with family members or friends since they sometimes don’t have the expertise to discern and cull out good ideas from the bad.
Family Business Advisory Services – Hire One Today
If you have never even considered hiring a family business advisory service before, this is your cue to start looking into it. With all the advantages listed above, you would be remiss if you didn’t.
A family business advisory group can be that one thing that pushes your business over the edge into a massive success. Your family business can become the stuff of legends and get remembered for centuries to come.
Hire Positively People and unlock your family business’ potential. Contact us today to get started.