Q:
I've been in business for a number of years, and I'm
starting to think about my exit strategy. I'd like to bring one
or more of my kids into the business to prime them for taking over,
and I worry about what this may do in terms of the employees
who've been with me awhile. How can I prepare my kids--and my
staff--for this transition?
A: For
many entrepreneurs--and this is something I see in many minority
businesses--having family involved is a very wise thing to do.
While it presents its own host of challenges, keeping the business
in the family is an exceptional way to create wealth for many
generations to come. It's what so many African American and
Latino entrepreneurs have done--and done so well over the
years.
Without knowing how old your children are, I can say that the
younger you can get them involved, the better. When you have more
than one possible choice for whom to turn the business over to, it
makes sense to expose each of your children early and let them tell
you, through their interest, involvement and commitment, who will
be most prepared to take over. It does not always turn out to be
the oldest child, even though it's a typical assumption.
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When they are old enough, prepare them to think about all the
technical aspects of your business and what type of schooling will
help them best prepare for their role. By putting the emphasis on
education, you're letting them know that you don't expect
them to leave high school and jump right in. If you're wanting
to get your kids involved to "labor" for you, I suggest
you do it over the summer and breaks and keep in mind that their
well-rounded education will help prepare them to be a good leader
(a quality needed to keep employees engaged) who is well-prepared
to move the company forward. Also, and I think this is so
important, put them to work! On-the-job training in every
department or area you can think of is essential for them.
You mentioned you had been an entrepreneur for awhile, so this
you understand. There is no school in the world that can prepare
anybody for being self-employed. The term "chief cook and
bottle washer" didn't come from someone with a one-track
mind. Engaging them in every aspect of your business is not only
good for them for the obvious reasons, but it's also an
exceptional way to grow their empathy for employees. How can they
possibly understand the challenges or issues an employee faces in
his or her role if they have no idea what their jobs really entail?
Before you hand your son or daughter the keys to your office, make
sure they've worked alongside others; this will help to ensure
your employees have the level of respect needed to work under your
child's direction. There is no worse situation than everyone
hating the boss's kid!
Education and training are key, but if I had to point out the
most important consideration, it would be to make sure that
whomever you select to take on the leadership role shares your
vision. Take the time to talk with each child; share your journey
with them. Communicate where you see the company going and see who
gets the most excited. If your children have their own vision for
the company and it's not in line with what you've built,
you may want to seek out other options...unless you are OK with
what they're seeing.
As for taking care of your current staff, it's imperative
that you articulate to them that their role and reward in the
company will stay the same and be protected. If you're bringing
in an adult child, this is especially true. I don't believe it
serves you any good purpose to involve employees in this decision
if the child you're bringing in is very young and working under
some of the areas we talked about earlier.
In the case where you're bringing in an adult child or
relative, expect some level of fallout from people on your staff
who may resent you bringing in your family. This will shake itself
out in the wash. How you communicate the transition, how you handle
yourself and how much information you share in the process will be
the driver for how your staff responds. Don't expect everyone
to be happy, but work toward that end to the extent you are
able--especially if it's an employee whom you really value and
want on your team. Employees play a huge role in how successful
your son or daughter will be. Without their support, long days are
ahead.
Finally, I highly recommend that you stay close to the company
for awhile, even after another has assumed the role. You will be
the buffer in times of trouble and the senior voice of reason. Keep
your ability to vote alive for a period of time--as determined by
you. And be willing to change your mind if your instincts tell you
that it won't work.
Robert
L. Wallace is the founder of EntreTeach LLC, a
new Web portal designed to foster the development of minority and
women entrepreneurs. He is also the founder and chairman of
The BiTH Group
Inc., an IT consulting firm that provides services in
management consulting, telecommunications, PC support and
integration, and document imaging services.
The opinions expressed in this column are those
of the author, not of Entrepreneur.com. All answers are intended to
be general in nature, without regard to specific geographical areas
or circumstances, and should only be relied upon after consulting
an appropriate expert, such as an attorney or
accountant.