The Crucial Question for Family Businesses: Family Needs or Business Priorities?

Construction Genius

Family or business first? Have you ever wondered? There's no right or wrong answer for that. It depends on what people believe or how they've been taught to believe. While some people implement the family-first business, others believe in the business-first family. Both may seem right from different perspectives, but there's more to it than just being right or wrong.

In this week's episode, we've had the pleasure of having a conversation with another industry expert, specializing in family business advocacy. Rob Ferguson is the founder and president of Ferguson Alliance, a family business strategic advisory service. Having led middle-market family-owned businesses for more than ten years, he uses his qualifications as a Certified Exit Planning Advisor and NACD Board Leadership Fellowship to help CEOs and boards navigate generational changes. His goal is to modify the statistics so that family companies last longer. He believes that with the correct foundation in place, family businesses may build an infinite legacy. He joined us today to talk about the essential question for any family business: family needs or business priorities first.

Starting the conversation, Rob defines the two terms' family first business' and 'business first family' along with how they help business owners build their long-term strategy. If you choose the family-first business, then you are choosing a family member, whether they are qualified or not, and if you choose the business-first family, you put the right people in the right position. We then talk about the importance of deciding how a family member joins the business and what requirements they need to fulfill. It makes them understand that they have to earn it if they want to join the business. Rob also explains the procedure for firing a family member, especially if they are a shareholder.

In the next phase of the conversation, Rob kindly shares some crucial details on the essential elements of a succession plan, structuring a succession plan, and the transition of business ownership. Furthermore, Rob explains the advantage of tying family values into a business culture and how it helps to continue the legacy. We also hear Rob explain how he educates people from younger generations who become business owners.

EPISODE HIGHLIGHTS

[04.43] Family first business or business first family.

[08.30] How does the performance of a family member affect the non-family members in a business?

[09.28] The mentality shift.

[13.20] The importance of setting requirements.

[17.46] Finding the prime zone.

[22.23] Firing a family member.

[24.11] Structuring a succession plan.

[25.40] Essential elements of a succession plan.

[28.10] The transition of business ownership.

[34.15] Integrating family values into the business culture.

[37.01] Handling biases as a mediator.

[44.15] Educating young people who become business owners.

[47.11] Out of the shadow.

[51.33] Generational differences.

TIPS & TOOLS TO IMPLEMENT TODAY

1. Asking yourself 'Are you a family-first business or business-first family' is important as a business owner.

2. Set requirements that must be fulfilled to earn a position at your organization, especially for family members.

3. Find the prime zone in your business.

4. Keep the business ownership in your blood family.

5. Build a succession plan that will choose the best replacement as the next business owner.

6. Listen for intense. Not how it's being said, but what is being said.

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RESOURCES

Connect with Rob Ferguson

LinkedIn - linkedin.com/in/robertaferguson/

Website - ferguson-alliance.com/