When it comes to family businesses, legacy is the connective tissue which binds the core purpose of the business – the values and achievements– accumulated across generations. The next gen of any legacy family business can make-orbreak the heirloom. To ensure a smooth functioning of the business, it is imperative to have a transformative induction plan in advance coupled with role clarity, accountability trackers, quarterly dialogues, industry leader mentorship and external work experience.
“To truly nurture the next generation, we must plant the seeds of knowledge and passion early, allowing them to blossom into capable stewards of the legacy. They should be imparted the necessary skills to successfully integrate into the family business ecosystem. The current generation must be clear about the roles the next-gen will play, whether they will be owner-managers, owner-strategists, or owner-investors, setting clear expectations and empowering them at the right time. Resources and capabilities should be gradually scaled-up in the system accordingly to support the next gen,” said Dr. Tatwamasi Dixit, Chairman at Family Business Research International Centre (FABRIC).
An inherited business is not only about looking back at what is valued from a family point of view, but also about looking forward at what motivates families to want to continue to build on that value through future generations. “There is no cookie cutter framework, as the process is unique to every family business and depends on family and business composition. However, if the next gen has different passion, it’s equally important to support their individual paths while allowing them to continue as owner-investors in the family enterprise,” the Chairman said, explaining about the family value chain.
THE NEXT GEN: NOT AN EASY INHERITANCE
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
How To Ask Family For Money
Your friends-and-family fundraising round doesn't have to be scary and awkward. Here's advice from one of the world's leading investors.
Data Breach Drama: When Trust Turns Costly In A Digital Age
Amid data breaches surges, Indian businesses are prone to financial and reputational fallout. Can cyber insurance emerge as a safeguard?
THE TERRAIN TAMER
Spearheading a California-based, Series D SaaS company is no easy feat. It requires a blend of ownership, innovation, and the ability to handle stress. But Anand Jain, co-founder and chief product officer of Clever Tap, finds his calm by escaping to rough terrain whenever he gets the chance-be it India or Colombia.
THE INTELLIGENT READS
Hardika Shah founded Kinara Capital in 2011 with the mission to address the acute credit gap in the micro-small-medium-enterprises (MSME) sector in India, by providing fast and flexible business capital to small business entrepreneurs. Despite operating in highly competitive and tough market of collateral free loans, Kinara Capital has been steadily growing in Hardika's leadership. In conversation with Entrepreneur, Hardika shares insights on her favourite books.
THE CURSE OF GROWING TOO FAST
FAIRE is a platform for small businesses, but it grew big the wrong way-almost becoming a $12 billion wreck. Here's how it fixed the problem, and why you should think twice before skyrocketing.
There's No Perfect Answer
I worked the same job for 19 years. I hated it, but it paid the bills. Then, in 2017, I entertained an exciting but terrifying question: Could I be an entrepreneur? I wasn't sure, so I needed something that felt like a guarantee. I searched for signs that would feel like a big, clear \"yes!\"
Give Yourself the Gift of Time
Happy holidays! Emmy Award-winning tech expert Mario Armstrong has five recs to get more hours in the day.
How to Become a Main Street Millionaire
It started when I bought one little laundromat. Now I have a whole portfolio of small local businesses that bring in tens of millions in revenue a year. Here's why following my playbook could be your ticket to financial freedom-and saving America's local small businesses.
Want to Better Serve Your Clients? Become Them.
As a designer for brands, starting my own product company gave me a dose of humility-and it changed the way I relate to clients.
How to Succeed With Gen Z Workers
People often say that younger employees are different. But are they? We asked six business leaders what they've learned, and how their teams thrive.
