How can you build resilience in your family business?

MAINTAIN PERSPECTIVE Sometimes at work we experience ups and downs and that’s completely normal. Understandably, it’s hard to maintain a positive mindset. However, we can alter a negative mindset, by installing a?growth mindset. This mindset encourages the taking on of challenges, which we can learn from and improve. By focusing on solutions, we can manage our negative thoughts to promote an environment where mistakes are welcomed and pressure is seen as a motivator.

Remember, not everyone in family is a business person. As you define your brand, allow for non-business minded contributions.

Building resilience in a family business involves fostering open communication through regular family meetings. Succession planning ensures a smooth leadership transition, and diversification mitigates risks by exploring new opportunities. Introduce professionalism with defined roles and expectations, and invest in the training of family members for adaptability and knowledge enhancement. Sound financial practices, effective conflict resolution, external expertise, and prioritizing employee well-being contribute to overall resilience. By integrating these strategies, a family business can navigate challenges, adapt to change, and thrive in a competitive landscape.

Build shared purpose, open talk, emotional smarts, learn from stumbles. Diversify income, plan your next leader, save for rainy days, embrace new ideas. Nurture family ties, engage your team, be good neighbours. Time & effort = resilient legacy!

Embracing a growth mindset is pivotal for fostering resilience in a family business. Viewing challenges as opportunities for learning and improvement rather than threats is key. Embracing feedback, innovation, and experimentation enables adaptation and growth.

The most powerful group in human society is the family. If you can balance personal development, communication will be the key to build a great business. Understand each-other values, strengths and responsibilities and a family company can go through any crisis an survive victorious. Important note, don’t forget you are building a corporation so hire people outside the family too, train your family members to manage teams and do not let only instincts run the progress

Family business thrives on great relationships both within the company or outside the company. Loyalty and a lifetime opportunity of friendship ensures continuous patronage both for internal and external customers. Customer referrals are assured when great friendships with good services culture is build.

That's the most important point to develop a resilient family business. Strong relationships especially within an organisation develop leadership qualities in every individual which in turn make a business more resilient.

The trust, loyalty, and collaboration they foster create a robust network of support crucial for resilience. Regular communication, appreciation, and conflict resolution within the family and with external stakeholders build enduring relationships. Balancing family and business roles, respecting boundaries, and understanding expectations help maintain harmony, ensuring the business and family dynamics work hand in hand, contributing to the long-term stability and adaptability of the enterprise.

Schedule regular family meetings to discuss both personal and business matters. Foster an environment of open communication and active listening. Implement conflict resolution strategies, ensuring that disagreements are addressed constructively to maintain strong family bonds.

Leaving opportunity for "leading up" in a family business is valuable. Having space for all levels of experience in the business to provide input and ideas, and the opportunity to be a leader in their chair, regardless of whether or not they are in a leadership role within the business. Ideas can spark from any level in a family business.

Healthy communication between all family members is the key to success. All parties must be willing to stay open-minded, listen to fresh ideas, and be ready to embrace change in the business. Also distributing labor equally amongst everyone helps tremendously. Some family businesses tend to be more lenient in workplace policies due to being related to one another which can cause productivity issues if not addressed properly.

Establish a culture that encourages experimentation and welcomes new ideas. Regularly assess market trends and competitors, and be prepared to pivot business strategies accordingly. Invest in technology and encourage a mindset of continuous improvement.

Understanding and grasping competitive advantage is crucial to face challenges and overcome obstacles. Life is constantly changing, and each day presents new opportunities to grow and adapt. Just like the city of Chicago experiences drastic changes in each season, from hot weather to freezing winters, businesses also undergo different seasons and changes. Therefore, companies must adapt and adjust to achieve resilience.

Yes…And, it’s also important to honor tradition, which doesn’t have to come at the expense of innovation. This tradition::innovation polarity is a classic family business polarity. The wrong question is should we follow tradition OR pursue innovation. The right question is how can we get the benefits of tradition AND the benefits of innovation, at the same time.

Management of family business resources relies on sound foundational aspects like a solid business structure and maintaining separate accounts—banking, interest-bearing, business credit cards, and lines of credit. Additionally, a clear business budget aids cash flow visibility, while regular auditing is crucial for mitigating risk. One thing I've found helpful is allocating a percentage of profits to an interest-bearing account, which serves both as a reserve for rainy days and aligns with long-term business goals. Diversifying profit investments actively safeguards business assets. Aligning these strategies with long-term goals and a robust business continuity plan, executable by trusted individuals including an attorney, is crucial.

Develop a robust financial plan that includes budgeting, forecasting, and risk management. Regularly review expenses and seek cost-saving opportunities. Efficiently allocate resources to areas that contribute most to the family business's long-term goals.

Effectively managing resources in a family business requires a strategic approach. Prioritize the key resources needed for success and align their allocation with strategic goals. Develop comprehensive plans and budgets, optimize efficiency through streamlined processes, and delegate responsibilities to capable family members and employees. Monitor and track resource allocation and performance, adapting as needed to changing business needs. Invest in growth initiatives and foster open communication and collaboration. Seek external expertise when necessary and continuously strive for improvement. By implementing these practices, family businesses can optimize resource management and enhance overall business performance.

1. Prioritize Resource Efficiency: Recognize the importance of efficient resource management as a cornerstone of resilience. Make it a priority to monitor your finances, inventory, and other essential resources with diligence. 2. Strategize for Financial Stability: Implement strategic financial planning to ensure stability. Optimize day-to-day operations and incorporate sustainable practices. These actions not only bolster resilience but also position your family business for sustained long-term success. 3. Position for Long-Term Success: Through meticulous resource management and strategic financial planning, position your family business for enduring success.

One of the many ways to achieve competitive advantage as a family business is by empowering your staff. Listen to them and be open to change in line with your core values. Create a good working culture that actually appreciate and value staff voice. That way you enhance employee brand value; attracting and retaining the right fit.

Much like family businesses can get caught up working IN the business and fail to work ON the business, leaders can get caught up leading IN themselves and fail to work ON themselves. The bonus of development in family business leadership is that the ripple effect can be profound. Not only does the leader grow, but she can then impact the growth of her employees and her descendants for generations.

BUILD NETWORKS The team around you are a huge asset that you need to make the most of. There is an old saying that states ‘you are the average of the 5 people you spend the most time with’. By surrounding yourself with people that motivate, inspire and challenge you, you can?build a network?of people that is driving you towards the place you want to be.

Create a training and development program for family members and employees. Encourage the pursuit of relevant certifications and education. Stay informed about industry advancements, and adapt the business's skill set to meet changing market demands.

In my experience developing your skills and capabilities will allow you to stop outsourcing things you are not competent with and be able to do those things in-house. It's a great way to reduce costs and it gives you a greater understanding of your work, allowing you to take advantage of certain aspects in the work. In addition you will avoid being duped or getting less value for your money when you know exactly what needs to be done and how it should be done.

Las empresas familiares suelen tener la limitación del aislamiento y falta de perspectivas e insumos externos, dificultando el acceso a información, recursos y redes; para potenciar su resiliencia es fundamental entonces compensar esta falencia buscando activamente apoyo en el entorno a través de vincularse con asociaciones gremiales, grupos profesionales, redes de pares, y participando en eventos, talleres y programas, así como también seeking mentorship de expertos consultores y asesores que puedan expandir su visión, y finalmente colaborando con socios, aliados y otros stakeholders que contribuyan con sus propios activos de conocimientos y contactos.

As a consultant I see so often how family members struggle to maintain a growth mindset when approaching relationships at work. It can challenging to see problems clearly and objectively when a family member is involved. It is also difficult to comprehend what is being communicated from family at work without the message being compromised by historical and unrelated experiences with that person. I have found that with an outside advisor with experience in developing emotional intelligence the family members of these organizations begin communicating better, collaborating more effectively and generally enjoying their work more. Invite a trustworthy outside voice to reach the next level!

1. Embrace External Insights: Acknowledge that resilience may necessitate seeking external perspectives and expertise. Take steps to build a network of advisors, mentors, and industry peers capable of offering valuable insights. 2. Establish a Support Network: Proactively create a support network comprising advisors, mentors, and industry peers. Their input can provide fresh perspectives, strategic guidance, and a more comprehensive understanding of market dynamics. 3. Tap into External Expertise: Engaging with advisors, mentors, and industry peers not only brings fresh insights but also offers strategic guidance, strengthening your family business's ability to navigate challenges with resilience.

Establish a network of mentors, advisors, and industry peers. Attend conferences and join professional associations. Engage in ongoing dialogues with external experts to gain insights and perspectives beyond the family's internal dynamics.

Family business leadership is double black diamond challenging due to the competing forces of the business mindset and the family mindset, which coexist yet drive opposing impulses. The Business Mindset, driven by power, values profits, competition and meritocracy. The Family Mindset, driven by love, values fairness, sharing and unconditional belonging. Polarity thinking is critical to integrating/harmonizing this leadership paradox.

One thing I've found helpful in building and growing a family business is instilling value and purpose in each member of the team. When there is a shared goal and purpose, there is no limits to what can be accomplished .

Resilience is a systems-level challenge. For many family business operating in more stable developed markets, the last few years have been a painful reminder that our external context can’t be fully controlled, and many outcomes can’t be reliably predicted, despite our best efforts. These investments must extend beyond internal structures and processes and project outwardly beyond the enterprise — aligning with broader efforts to support social and environmental resilience.

?BEING AUTHENTIC By being authentic, we are being true to the values and beliefs we hold in high regard. These could be things like honesty, integrity, trustworthiness and loyalty.?An interesting study?has shown that by finding congruence between these values, beliefs and your actions, it can lead to increased?emotional intelligence. Meaning, when you experience emotionally tricky situations, you’re more likely to be able to cope with them.

Get uncomfortable. Do the hard things. Do things that challenge yourself to grow and push beyond your means. And it doesn't just have to be in business. Build resilience in all areas of your life and it will translate to your business.