The Price of Conflict Avoidance in Business Succession

Let me tell you a story…. of how putting your head in the sand can jeopardise your business, relationships, future and health.

Alex owned a successful manufacturing company.

Passed down through generations in his family.

The business had a significant number of family members working in various roles, including Alex's siblings, cousins, and even his children.

Over the years, as the business grew, so did the complexity of managing relationships within the family.

One of the key conflicts in the business revolved around succession planning.

Alex was approaching retirement age, he was desperate to step-back and focus on his small-holding farm.

But there was uncertainty about who would take over the leadership of the company.

While some family members were interested in leading the business, others had different aspirations or felt that they were more qualified.

Instead of addressing this conflict head-on, Alex chose to avoid the issue altogether.

He continued to delay discussions about succession planning and leadership transition, hoping that the matter would resolve itself over time.

As a result of Alex's avoidance, different factions within the family started forming, each supporting a different potential successor.

The lack of a clear plan created a sense of uncertainty among employees and even affected the company's performance.

Key non-family members started to leave the business.

And then Alex had a minor stroke.

Which prompted the calling of a family meeting to discuss succession planning and the future of the business.

While the family did eventually come to a resolution, the damage caused by the prolonged avoidance of conflict on all levels took time to repair.

The Family Business was never the same again.

Lessons to learn:

• Nothing ever resolves itself.
• Take action – sooner rather than later. However painful you fear the path ahead may be.
• Consider appointing a Family Business Advisor to act as an independent, trusted partner to help the family and business navigate their journey.
• Establish a Family Business Framework. Put rules in place that cover succession, retirement, employment, remuneration, expectations etc.
• Make life easier for yourself to lead the business and not spend time and energy avoiding key issues.Contact Mel at Cloud-Busting if you would like to learn more about how we support Family-owned Businesses.

What Small Businesses Can Expect in 2024

From legislation and tax changes to side hustle trends and entrepreneurship, here’s what we expect to see for small businesses in 2024:

1. Uncertainty as a general election edges closer and bills remain high
2. Tax changes
3. Continuing rise of side hustles
4. More young people starting businesses
5. Tipping laws expected to change
6. Growing need for childminders?
7. Sustainability and shopping second hand will remain important Taken from https://www.simplybusiness.co.uk/knowledge/articles/2024-small-business-predictions/ My advice to my clients is to revisit your SWOT Analysis (Strengths, Weaknesses, Threats & Opportunities), and ask whether any of the above will positively or negatively impact your business.Turn your weaknesses into STRENGTHS whilst you have time.

Plate-Spinning Tips for February

Organise your work around your energy levels. Your productivity levels are directly related to your energy levels, so if you can, try to tackle your hardest tasks for when your energy levels are at their highest.?

An afternoon nap might not always be possible, but take a walk, go and chat with your team, give your brain some downtime, even if you can't give your body what it needs most.

There is loads written around this subject.

Try this link to learn more.

Have a fab, fun and productive month Busy Bosses!!

Mel ??