How a family business can build for the future while retaining its legacy

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Family businesses hold a special place in consumer’s minds. When done correctly, they feel like home to a community: a place each generation knows and bonds over. It can often be that way for the family actually running it as it gets passed from one generation to the next.

But they also come with challenges, like finding an outsider to take over when the kids aren’t interested or keeping family politics typically left to the holiday dinner table outside the office. 

This week, LinkedIn members dove into what it means to be part of a family business and, more importantly, how to make them succeed. Below are some of the comments that jumped out at me. 

One theme that continued to crop up is this idea of carrying on the legacy of the founder while innovating and forging new paths. LinkedIn Senior Editor-at-Large Jessi Hempel, Conversations Editor Susy Jackson and I sat down to discuss just that in this week’s Hello Monday live show. Keep reading to find out what other news I’m keeping an eye on this week. 

“Strong partnerships are comprised of owners who are active in the business on a day-to-day basis. Ideally, each partner will be working in a clearly defined role. In that role, the partner is acting as an employee. Yet, the partner is still an owner as well! The reality is this: you must be able to wear two different hats…the owner hat and the employee hat. These roles are not the same and have distinct differences.” - John Ninkovich, Performix Group

“When the company transfers to the next generation of leadership, be sure to keep the cultural aspects that make it special and build upon the foundation as you apply new technology or advancements to your offerings. Finally, just because it's family doesn't mean the company should transfer to the next generation. Sometimes if there is no successor or heir apparent who is qualified to run the company, the best option is to sell.” - Michelle Leisner, H&H Graphics

“We recently purchased a franchise boutique fitness studio that my wife runs day to day. Our daughter will get to see her mom as a business owner, which is something that is extremely important to us as it will allow her to see that it's just as normal for a woman to own and run a business as it is for a man.” - Rob Jones, Pure Barre

“Family members can be happy and prosperous if they 1) pull together around a common goal, 2) have clear expectations communicated, and 3) have their respective areas of responsibility mapped out.” - Marilyn Maslin, the Maslin Group

“My brothers and I were young, and we spent more time micromanaging each other than focusing on things we should have. To our great luck, our dad was a great coach. He told us one day, "You know what I've been thinking? I've been thinking if we all get on the same side of the car and push we'll go a lot further a lot faster." He walked out of the room and my brother and I looked at one another and realized we needed to get our act together. So, we created an org chart and operating manuals that spelled out how each box on the org chart needed to function 80% of the time.” - Al Levi, the 7-Power Contractor

“The toughest thing about a family-owned business is the death of an integral member of the business. Six and a half years ago I guided our business through the death of my husband. Without proper succession planning, it can be devastating to the business and the family.” - Dana Cox, Stewart Cox Consulting

“Just because they are your son/daughter does not necessarily make them the best candidate to take over. I think a child who starts at the bottom of the company and works their way up, instead of just being slotted in as a SVP after graduation, has a better chance of understanding the business at its core, in addition to garnering the respect of their co-workers (and soon to be employees).” - Mark Jones, NorthLanding Financial Partners

Do these comments resonate with you? What do you think are the challenges unique to being part of a family-operated enterprise?

Other News I’m Reading:

Consumer cut their spending 

Retail sales fell for the first time in seven months in September, as consumers cut spending on cars and building materials, as well as e-commerce. Sales fell 0.3% last month, the Commerce Department said. The softening of what has been the strongest part of the economy—consumer spending—may signal further economic slowing, increasing the likelihood that the Federal Reserve will cut interest rates again this month. | Here’s what people are saying

U.S. cities are turning against tourism

The nation’s small historic cities are beginning to “buckle from a prolonged boom in tourism,” Bloomberg writes, as ever-growing wanderlust has led the U.S. travel industry to log 116 consecutive months of growth. But towns such as Charleston; Asheville, and Moab, Utah, are increasingly directing their wrath at the hotel industry. Most have passed moratoriums on hotel construction or banned new lodging applications. The cities fear that bowing to rocketing demand and allowing more hotels and holiday rentals will further strain already rising housing prices. What does this mean for the business who depend on tourism for revenue? | Here’s what people are saying