Family Business Advice 101: Tips For Transitioning Power To The Next Generation

It’s finally happening.  Maybe you’re ready to retire and enjoy your golden years, or perhaps you’re finally ready to hand over control to the next generation.  Either way, after years of success you’re ready to hand over the family business to the next generation.  It can be difficult to step down after decades of doing things your way, but this is something you’ve been planning on doing since your first day of business. 

Giving someone else control of your business can be stressful regardless of if you’re related or not, and some find that it’s more difficult to give up control of a family business than any other kind.  Charles Bouri and Prudence MacLeod were able to take over the family business without any problems, but that’s probably because their parents did a good job of transitioning over control.  If you’re going to be stepping down from the family business soon, make sure that you follow these tips to ensure that everything goes smoothly.

Know that things will change

When some family business owners hand over control to the next generation, they’re surprised and even a little offended when they see their children, nieces, and nephews making changes to their business.  No one you put in charge of your business is going to run things the exact same way you did, and if you want your business to succeed you wouldn’t want that way.  Businesses need to evolve with their markets, and a business that stays the same each and every year is eventually going to fall out of public favor.  Embrace the change, and be happy that the new owners are excited to be making a change.

Talk about it frequently

If you want the transition of power to go by smoothly, you need to talk about it with your family members, and talk about it often.  Honest conversations about your plans are crucial for ensuring that your employees and family members know what they need to know about the upcoming transition.  While we’re on the topic of honest conversation, we should move on to the next topic…

Be ready to defend your successor

Maybe your cousin always envisioned that they would be the one to take over the family business instead of your son.  Maybe your life partner doesn’t understand why you’re choosing one child over the other.  Either way there are going to be some people that are going to be surprised by your choice of leadership, and they’re going to demand answers about why you chose who you chose.  You don’t need to go into in-depth detail about your decisions; you just need to be prepared to answer people when they start asking questions.  A simple statement about the good qualities of your successor (good business sense, spotless work record, enthusiasm, new ideas, etc) should be enough to explain your choice.  

Tips for Sustainability from a Sustainable Company

One of the things that Seament is most well-known for, aside from the fact that it is the first company to create and use a floating terminal, is the fact that it's extremely sustainable. Alex Bouri, the founder, has always made sustainability a huge priority for the company, and he and his sons, Charles, Maurice, and Mark Bouri, are all members of other organizations that promote environmental consciousness and sustainability. If you're running a business and want to be greener, take these tips from them.

Measure, Measure, Measure

You can't know how well (or how poorly) your company is doing unless you have a clear picture through measurements. Whether you outsource the job or do it yourself, you need to define and quantify the areas in which you'd like to improve, set a numerical goal, and measure those areas on a regular basis to ensure you're heading toward that goal. This is the only way to know if your environmental plans are working.

Make Adjustments to your Supply Chain

There have been huge changes of late in the way that we buy and use the materials we need to run our businesses. The market has expanded and the options are endless, so there's no reason you shouldn't be taking advantage. It's up to you to look into the companies that you buy from and supply to, and decide who you'd like to support. This keeps the field competitive, which encourages other companies to be sustainable as well.

Social Responsibility

Being sustainable doesn't have to just apply to what goes on within your company. You could use your profits to support local green projects, donate to schools, have informational conferences about your practices, and more. The benefits of doing so are worth it, as well -- customers are much more likely to want to support a business that cares about the world around it, and you'll have access to much more competitive employees. Having a good reputation is always great for branding, relationships with customers, and outreach.

Company Culture

If you get your employees into the mindset that you're a sustainable company, they will follow suit. They'll recycle, use energy more efficiently, try to cut back on wasted resources, and the like. Most employees who are surveyed say that they will recycle when they have a recycling bin available, so if you simply make it easy for your employees to go green, you can count on them to do it. The impact of having everyone in the company cutting back on waste is much larger than one might expect.