{"id":6550,"date":"2020-06-18T09:13:42","date_gmt":"2020-06-18T07:13:42","guid":{"rendered":"https:\/\/consultingmix.giulia.supporthost.eu\/passaggio-generazionale-7-linee-guida-per-il-futuro\/"},"modified":"2021-01-20T10:03:58","modified_gmt":"2021-01-20T09:03:58","slug":"how-to-transition-from-a-family-run-to-a-family-owned-business-7-guidelines-for-the-future","status":"publish","type":"post","link":"https:\/\/consultingmix.giulia.supporthost.eu\/en\/how-to-transition-from-a-family-run-to-a-family-owned-business-7-guidelines-for-the-future\/","title":{"rendered":"Rethinking the transition of the Family Business: 7 guidelines for the future"},"content":{"rendered":"\t\t
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Unlocking growth by moving from a family owned business to a family run business is certainly a big step, the question is, is it the right one for you. What are the guidelines to follow when thinking about succession planning or the next step in business expansion?<\/span> <\/p>\n\n

In Italy, 65% of businesses with a turnover of more than 20 million euros are family run businesses and of these 40% are in the manufacturing sector. 23% have a Founder\/CEO which is over 75 years old.<\/span> <\/p>\n\n

Businesses with these characteristics generally have a below average profitability performance. In addition, 18% of these businesses expect a generational shift within the next 5 years.<\/span> <\/p>\n\n

For businesses facing this delicate phase, in addition to formulating an urgent strategy to address the new challenges posed by the coronavirus emergency,<\/b> <\/span> <\/a> as a priority they must also think about how to speed up the succession plan.<\/span> <\/p>\n\n

\n<\/div>\n\nFind out more about relaunching your business<\/b><\/a><\/span><\/b><\/span><\/p>\n\n\n
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When planning the succession of a business, it may happen that family members are unwilling or unable to maintain a successful and profitable family business. In these circumstances, the Founder\/CEO may need to consider the option of handing that responsibility over to someone who can outside of the family.<\/span> <\/p>\n

In some cases it may seem like the only available ‘exit’ strategy is that of selling to a third party. The business can however successfully complete the generational transition without resorting to selling the business or operations such as a M&A<\/b><\/span><\/a>, as long as a development plan is created taking into consideration the fundamentals of the business: family, management and ownership.<\/span> <\/p>\n

7 guidelines to consider when transitioning from a family-business to a family-owned business:<\/span> <\/p>\n\n\ni. Distinguish the business from the family <\/span><\/b><\/span><\/p>\n\n\n

Can a family business thrive without a family member at the helm? Can it remain a family business and retain its own family values when the CEO is not part of the family? If family members are not qualified or not motivated to lead the business, is selling the company the best course of action?<\/span> <\/p>\n\n\n

Protecting the business also means protecting the family, however it is important that individual expectations of the family members do not predominate; transparency and equal opportunities do not mean equal power and equal roles.<\/span> <\/p>\n\n

For a successful handover, the business will require a leadership that creates an effective decision-making process <\/b><\/span> <\/a> especially now where we are facing a difficult post-coronavirus economic recession. The founder in particular, will need to be steered towards slowly withdrawing from activities which require his attention in order for a handover to take place over a period of time. <\/span> <\/p>\n\n

When thinking about passing on the helm of the business, it is known that some founders have an almost fixated idea that all heirs have the right to a position of power in the business. Without however, considering their propensity, preparation, personal career preferences, a suitable role, studies and academic results.<\/span> <\/p>\n\n\n\n\n

When a family business is unable to decide on a suitable family successor, the first step is to meet with the family owners to clearly determine the family’s vision, goals and desires.<\/span> <\/p>\n

Sometimes, the senior generation’s dreams are not shared by the younger generation or the younger generation cannot agree amongst themselves concerning the future of the business. In some cases, when the older generation has decided to sell, the younger generation together try to convince their parents to keep the business in the family.<\/span> <\/p>\n

Whatever the case, if the business is to remain in the family, the family business owners should be firmly committed not only to a shared vision of the future but also to a shared rationale for their vision. This is usually achieved through extensive discussion among family owners and development of plans and documents to ensure ongoing mutual commitment.<\/span> <\/p>\n

Plans and documents typically include:<\/span> <\/p>\n\n