Issues & trends - solutions

Question:
I am interested in entering the family Business. I have spoken with my parents who are the owners. Both have active roles in the business. They have identified concerns including employee rivalry (for non-family employees), work life balance issues (as I am about to be married and will one day start a family) and surprisingly, they do not see me as a successor. I am tertiary qualified in engineering and I have worked outside the family Business for 5 years. How would you proceed?

Answer:
As I do not have the background to your family Business, I presume that your qualifications and experience are relevant to the type of business your family runs. If so, then it is clear that your parents are highlighting difficulties and challenges that daughter successors face in joining the family Business. It is not the problems that you encounter that are the real issues, it is how they are handled. In particular, providing there is a job available that fits your qualifications and experience and you are brought in at the right level then it should be manageable with existing employees. You will soon be able to demonstrate your ability and capacity to handle the position. Most problems arise when you are offered a position which is beyond your capacity to handle.

In today’s commercial environment, it is important for businesses to demonstrate flexibility in working conditions. If and when you start a family you may have the opportunity to work from home or alternatively, you may take a job of non-executive director to retain your involvement with the business.

If you are ambitious and capable, you should not be treated as if you have no chance of being promoted to the top. Is the family Business run as a meritocracy or as an autocracy? Will your parents develop an exit strategy around a trade sale or management buyout? You need to know the answers to these questions. If you have other siblings in the business, then you should know how you achieve promotions, how you may obtain equity and how you resolve issues and generally communicate from a family and business perspective.

I would ask my parents detailed questions about a Family Constitution, a Family Council, the Board of Directors, Business Plans, Succession Plans, Financial Statements and the current Strategic Plan. You will then be able to judge the degrees of professionalism of the business, your likely future opportunities and the ability of your parents to communicate openly with you. Finally if you have the passion for the family Business, then it is important that your opinions are respected and that you can see opportunities for your future.