I believe that family business needs to be looked at from three dimensions:
1. Managing Business: Which means scaling up the business professionally, this will help the business achieve profitable growth. This means working on the business strategy and executing the strategy, which will help the business and the promoting family benefit from the growth. The business management also needs to gear up to manage the challenges of scale.
This calls for Business Plan which consists of 4 major components – Sales plan, Profit plan, Cash plan and Investment plan.
2. Managing Family: The promoting family plays dual role of owner and/or manager, here the family should make an effort to create clarity on the ownership and management rights and rewards. If the business has to grow professionally, then the family members in the management role should acquire necessary business skills to manage the business and have specific role to make meaningful contribution to the business.
This call for Role Clarity, Acquiring Skills for the defined role, and Induction into the function, managing it independently, working together and passing on the legacy. This is very easy to say, but family has to closely work together to make this possible. In
the current environment with opportunities abound; more and more family businesses are finding it difficult to attract the next generation into the family business.
3. Managing Wealth: Whenever we say wealth, there is natural tendency to think of only financial wealth; we believe apart from financial wealth, the family business additionally creates two other types of wealth, which are:
there is a great need for creating this awareness among the family business community, which will help it strive for growth and create prosperity for the family, business and society as a whole.