Becoming the successor to the family business is a genuine honour. But taking over control of the family legacy, and taking the business to new heights, can be daunting.
The older generation has been the curator of this business for years and will want to pass the company on to a trusted pair of hands – someone who can continue their hard work.
But what are the key skills you need as the new leader of the business?
You may already be fundamental to the operation of your family business. Or you may be returning to the company after a period in industry, or pursuing other life goals. Whatever your experience, it’s important to hone your skills, so you’re ready to take on the role.
We’ve outlined five of the most important skills and capabilities you’ll need as the leader of the family business:
#1 A deep understanding of the business.
As the head of the company, you’ll need to have a real grasp of the inner workings of the whole business. That means getting acquainted with the company’s everyday operations, finances, sales, marketing and the overall competitive and economic landscape that you’re trading in.
#2 Leadership skills and the ability to develop.
You’re the boss now, so that’s going to mean developing some strong leadership. Learning these interpersonal and motivational skills will be critical when you’re managing internal teams, making decisions with your management team and board, and navigating the challenges that every business faces.
#3 A clear focus on building good relationships.
Good business is always based on solid, trusted relationships. It’s important to nurture these key relationships, whether it’s with your family members, employees, customers or suppliers. Be open, honest and transparent with all your stakeholders to promote the best long-term relationships.
#4 An eye for strategy and business planning.
You’re the person leading the business now, and that includes being the strategic thinker behind the company’s future direction. Think carefully about your goals for the company and create a clear vision for the business’s future, with a strategic plan to guide your next steps.
#5 Excellent financial management skills.
Cash is king, so being in control of your finances is a must. Getting to grips with the financial aspects of the business may not seem that exciting, but being in control of budgeting, cashflow and profitability is a key driver to making the company successful in the mid-to-long term.
Talk to us about getting ready to take over the family business
You’ll want to do the family proud and be the best head of the business you can. But you can’t do that alone. It’s invaluable to have the best advice, support and guidance along the way.
Talk to our team about developing your skills as a business leader, setting the best goals for the family business and putting some strategic thinking behind your future plans.
The team at EMspire Advisory are trusted, qualified Chartered Accountants, tax agents, and small business accountants. We work closely with our clients to achieve the best possible outcomes. To find out more, please contact us!
Please note that this information is not specific and is general in nature and cannot be relied on as advice. Please contact us for advice specific to you and your circumstances.