Risk in your business.

You encounter this challenge everyday in your business. Should you add a new product line? Expand the geographical businesses’ reach outside of current markets? The risks that I am writing about today are not about the business operations. The risks to take are steps and carefully planning needed for the longevity of the business.

Today, I am writing about you and your family interactions, mostly as it relates to the family business. Risk taking in your family communication is not easy to do. Having difficult conversations can let you and the business thrive. Not having difficult conversations could stifle and hold back the business.

Let’s look at an example. You have an ambitious child that has been working in the business for one year. The company has an opening in a senior management position, let’s say a complicated position like VP manufacturing. Your child tells you that they want that position, although they are not yet qualified for this position as still is learning about the business. At an early stage of the search, you have a number of potential conversations. Remember this is your child.

One conversation could be “At this time, you are not qualified and cannot be granted this position. Now back to work!” Perhaps a more productive tact could be “You do not yet have the knowledge of our family business to take on this position. I really want you to get there. Let’s work together, and find the resources and develop a plan to get you there.” Which conversation do you have? Beware.

Having these conversations is not something, as in all human interactions, that is simple, nor to be approached necessarily head on. In some cases, seeking advice from an experienced family enterprise advisor can help you frame your response before you have that challenging conversation. Your goals: #1: preserve the family and #2: keep the business moving forward. Many situations, some potentially conflict filled, you encounter have already been considered by others and addressed. Many resources exist for the business owner to help: peer groups of family business owners in your community, advisors knowledgeable about family businesses and in some cases counsellors. Each can be helpful in differing situations.

Learn, consider, apply!