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BUILDING A VISIONARY COMPANY: (7 methods + tips)

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building a visionary company

What is a VISIONARY COMPANY?

Looking at successful business organisations that have been from time immemorial, you would notice something quite outstanding about any visionary company. Most of them have risen above the competition, survived turbulence and economic crunch, while some have survived liquidation. Certain factors have stood them out among their equals and made them the crown jewel of whatever industry they belong to.

Uniquely some have lived over 100 years of existence and are still operating in more competitive advantage because of their vision. They have continued to remind themselves of the crucial distinction between the ‘core’ and ‘noncore’, between what should never change and what should be open for change, between what is truly sacred and what is not.

CHARACTERISTICS OF VISIONARY COMPANIES

Visionary companies have characterised themselves by the following

1. They have built a legacy and reputation

for themselves over time and have become so outstanding in their mode of operations, they have set themselves as a benchmark to other firms operating in the same industry and outside.

2. Core Idealogy

Visionary companies have learned to live by the core ideology laid down by the founders while harmonising changes to effectively pursue the purpose for which they were created. The objectives for which they were founded has not been altered but has rather become the driving force to achieving their set goals.

3. Visionary companies are pacesetters and trailblazers

most of them have chosen to be clock builders rather than time tellers. They set the pace and are seen as role models to their fellow industry rivals and have also distinguished themselves by following best practices in all their operations.

4. Adaptability to change

Visionary companies have survived through times both from within and outside the organisation and have grown overwhelmingly, they have also effectively managed to change having learnt from previous mistakes and mistakes of rivals, they have efficiently built on their core strength.

5. Big but clear goals

Visionary companies set big but achievable goal and objectives and have made such their perpetual driving force for success, they set goals that may seem rather unachievable to other firms, but have made more effort to achieving those big goals.

6. Employee Satisfaction not just customers

Visionary companies are a great place to work, they make sure their employees have the best working atmosphere, they prioritise employees Empowerment and continuous improvement, they also groom their employees on how to manage customers/clients and also live and carry on the company’s core ideology. They also hire the best hands to carry out certain duties.

HOW TO BECOME A VISIONARY COMPANY

Becoming a visionary company is not just what you write down on paper or engrave in the wall of the company. it’s not just a well-structured vision and mission statement, but it includes all of these and more. Becoming a visionary company means you have to engrave what the company was founded for and stand by in the hearts of whoever comes to it whether, it’s the customers, employees, investors, partners, etc.

Read Also: How Apple built their brand

You have to instil the doctrine that guides the company into the hearts of the employees and management, you have to make sure the company run through their bloodstream. That is what visionary companies are made up of.

Some ways to achieve that are

1. BUILD A VISION

For a company to become visionary, it must have a path for which it has chosen to toll. Often times, those visions are put in writing and made the VISION and MISSION statement. But beyond writing, the vision must be turned into strategies and objectives through which the vision would be achieved.

Asides the vision and mission statement, there is always that “big idea ” that led to the setting up of the company and that idea should continue to be built on, improved on and also opened to changes if need be. No matter the change in leadership or expansion of business, the core ideology of why you are in business must be maintained and followed meticulously.

Read Also: How Google built a visionary company

When building a vision, it has to be workable and it should be a driving force that can steer up positive actions and motivate any individual that comes in contact with the firm. The vision should be the life the firm lives every day.

2. SET OUT OBJECTIVES

In strategic planning vision are turned into objectives, this is actually the responsibility of the top echelons of the organisation. It is their sole duty to break down the vision into workable objectives. Assuming a firm’s vision is to be “the first choice in-flight service”, that is, for an air transport company. The top management will have to translate that vision into objectives like a brand of planes in their fleet, the in-flight services, route and destination network, customer service and airfares. All these put together will, if constantly worked by and improved on with time, will in the long run achieve the vision of that company. Furthermore, the means of communicating the objective should be understandable and achievable.

3. BUILD A TEAM

A vision can not be achieved by itself, it needs to be carried on by an individual with a drive to achieving that set goal. Having a team of like-minded people is pivotal to any visionary company’s progress. So while recruiting one must look out for distinct character traits that would harmonise with the firm’s vision or better still, hire people who are enthusiastic about the vision of the company.

From the top management to the least employee of the company should be made to understand that their efforts are very pivotal to the company’s growth and success and as such, should make sure those objectives are achieved. Having or building a corporate culture should be prioritised, a cult-like structure where the employees are indoctrinated about what actually drives the company.

Read Also: How to build a strong brand identity

The team should not be divergent in views but rather, harmonised while being allowed to express their personal views about certain key decisions.
The working environment should be work-friendly not so tensed and not allowing lethargy or lackadaisical attitude. High level of decorum and professional ethics should be enforced.

4. SET PRIORITIES

For any business to succeed or be termed visionary, it must have a driving force, something it gives utmost importance to. Of course most businesses are out to maximise profit, but to become visionary need something extra. It is OK to chase the numbers and increase favourable figures but, beyond that is the question “what will your company be known for”? Priorities should be either in excellent customer service delivery, product durability and quality, customer relationship, etc. Management should prioritise these in order to outshine its rivals.

5. TRY TO BE EXTRA-ORDINARY

Why some firms stand out among their equals, is because they did something rather extra. Going the extra mile to do something exceptional makes a business VISIONARY. Also learning over time, continuous improvement, and adaptability to environmental changes both within and outside the organisation helps to give that extra boost to be exceptional.

Read Also: The Coca-Cola Success secrets

In conclusion, being visionary doesn’t come so easy, it is doing the best in every day’s activity, staying true to the core ideology and constantly stimulate progress in all areas. The VISION of any business should be engraved in the heart of everyone that chooses to work there and should be carried on in the unforeseen future.

ADVICE TO BUSINESS OWNERS AND ENTREPRENEURS

You should be ready to set big goals.
Maintain the core ideology and stimulate progress constantly.
Steady continuous improvement should be the goal.
Build a sustainable culture that would live beyond the owners and founders.
Build a team with a visionary drive. 

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BUSINESSES TO START right away- Easy 40 ideas (+ business plans)

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BUSINESSES-TO-START-RIGHT-AWAY

When you chat with the common man in the street, you would be amazed at the massive business ideas people have in mind. In most cases, they cannot execute these well-articulated business ideas coupled with specialized skills because of the massive start-up capital involved.

The lack of upfront capital is the major reason many dreams go unfilled and in a bid to salvage the situation, we have through thorough research come up with a list of businesses to start right away and make a high profit.

These businesses range from online to small popular businesses with high-profit and other business ideas you probably never knew or imagined their profitability. If I were you, I would take advantage of these business ideas without a second thought.

Businesses to Start Right Away

#1) Start Mini-importation Business

The shipping business is a highly profitable business to start right away. You can start by importing some high-in demand goods in small quantities.

Also, you can look for contact overseas to learn of profitable items you can export from your country and start making money.

#2) Real Estate

Many people believe the Real estate business requires a massive capital start-up but, that’s always the case. You can start a real estate firm in a less competitive neighborhood and start making good money immediately. Partnering with people with similar idea who have good fund to start up the business will make a great start.

#3) Be a Freelancer

What are you skilled at? Are you creative? Can you write or design?

Whatever talent you got, you can double it as a source of income. The internet is flooded with people who are willing to pay for your skill on platforms like www.fiverr.com or www.upwork.com and you would understand better. You can turn your hobby into a business and earn a good income.

#4) Set up an Online Training Course

Online tutoring is one of the best businesses to start right away. You make money while helping people isn’t that great? You can help people in need of a gift or skill your posses by setting up an online training course. By doing this, you impact positively on others while making money at the same time.

#5) Create e-books and Sell Online

According to a recent statistics, the number of people who have dropped the usual hard copy for soft copy books has soared over the years and the number is projected to keep increasing in geometric proportions in the coming years.

You can seize the opportunity of this growing market and make a buck-load of cash. Simply start by creating e-books from your area of specialization and sell online.

#6) Setup Online Marketing Agency

An online marketing agency is one of the businesses to start right away. If you spend so much time online, it’s time to start thinking of ways of making money off your time spent online.

Search the internet on how to set up online marketing agency and start making money.

#7) Affiliate Marketing and Sales

Affiliate marketing is currently one of the best ways of making online. All you need to do is to create a website or blog in a niche you are vast in. Once you create a website, next is to sign up with the affiliate programs of your choice where you get paid for embedding some links on the website.

To get started on a good note, check out the best affiliate marketing programs for beginners.

#8) Event Planning

Event planning business is a business you can start with little or no capital and make money right away. If you’re are organized, you can get paid to plan birthday parties, weddings, and conferences. If you’re really exceptional at what you do, you will grow very fast from getting referrals

#9) App Development

Creating simple apps require just a few minutes yet not all know how to create one. You can make money out of publishers who wish to have their websites in apps.

Learn the skill of app making to start raking-in money.

#10) Computer Repair

Computer repair business is another means of making money with small capital invested. All you need to do to make money from computer repairs to learn the skill of software or hardware engineering.

As a software engineer, you can make lots of money online from people you don’t need to meet.

#11) Interior Decorator

Interior decoration business is another profitable business with small start-up capital. You need to do is to learn the art of interior decoration.

The business would be easy for you if you are creative and have a flair for fine art. Learn the trade to start earning good money.

#12) Blogging

Blogging is currently one of the best ways of making money online.

If you like writing and you command a decent use of the English Language. And if you have spare time? Making money out of blogging involves a fine combination of skill and patience.

You can start a blog by employing a web developer to help you create a blog. The next step is to apply for a Google Adsense program which is the best means to monetize a blog.

#13) Home Tutoring

Do you have in-depth knowledge of a subject? Are you good at mathematics? You can start making money by making people know you can teach their kids or wards. The home tutors may not be very lucrative but can earn you extra income while imparting knowledge to others.

#14. Drive for Uber or Lyft

Companies like Uber and Lyft are great ways to make money quickly. You need a clean driving record, a fairly new car, and permission to work anywhere you live.

When you have all of these things, you can work whenever you can, whether it be in the middle of the day during rush hour or in the early hours of the night on a weekend. It is one of the sure tips on how to make 500 dollars fast.

#15. Become a Market Research Participant

Businesses searching for consumer opinions on a variety of products and services provide you with the opportunity to collect your opinion.

This often includes writing or giving your opinion, answering surveys or polls, or breaking off from a discussion group. The mechanics don’t matter. The point is, you can rely on it from time to time. Focusgroup.com is just a company looking for participants.

#16. Sell on Amazon

Amazon makes it pretty easy to list and sell old books, games, and devices on its marketplace. You can make more than a few dollars with expensive college textbooks. Make sure the books are in good condition.

You will get negative reviews for trying to sell books that are falling apart or games that are scratched. Remember, be open about any shortcomings, no matter how small they are and how few people notice them right away.

#17. Sell used Technology on Craigslist

The market for used electronics is huge. You can use Craigslist to part with your old iPhone or MacBook. You can get a premium for these types of electronics. Some people even flip items by buying and reselling them.

You can also use a website like Gazelle to sell your used phones, whatever type you have. Companies like this have made an entire business model out of buying and refurbishing used phones.

Either way, if you have these items lying around your house, you can be confident that you will get a fair bit of cash relatively quickly.

#18. Perform tasks with TaskRabbit

TaskRabbit gives you access to an existing marketplace of people looking for on-site help with housework. The tasks are not always small. This platform (along with others) also offers larger tasks like renovating houses.

#19. Deliver for PostMates

PostMates is a great way to make money when you are in an emergency, and you don’t even need a car, just a bike for deliveries in busier cities and downtown.

PostMates states on their website that you can make deliveries up to $25 an hour. You might also earn some tips along the way, so this is a great option for people who want to do something on their free time, much like the big ridesharing opportunities cluttering app stores everywhere.

#20. Flip Real Estate Contracts

If you think this is prohibitive, it is not. You can flip real estate contracts without ever taking ownership of the property.

This is not a fixer-upper endeavor, just securing a contract and selling it to an interested party. That’s it.

#21. Sell on CafePress or Etsy

If you can design digital items, you can sell them for part of the profit on a website like CafePress. You can only do this with design software. They can include custom logos, inspirational sayings, and other current or trending designs that will appeal to the masses.

You could hire a designer to help you do this, but you still have to come up with the ideas. This works best when you understand the design itself but don’t require overhead. Articles are printed and delivered upon request. You just get part of the proceeds.

#22. Answer questions about JustAnswer

People looking for expertise online. With JustAnswer (and several similar websites), doctors, lawyers, engineers, and others with advanced knowledge can make a low income just by answering questions from people who would otherwise have to pay a large sum for those answers.

This platform is a great resource for people. It’s also lucrative (for the time spent) when you’re looking to make some cash in a hurry.

#23. Grab gigs on Fivver

Regardless of the type of service you offer, you can likely offer it to Fivver. This is great for digital services like graphic design, web design, short audio or video clip creation, editing services, writing, etc.

Fivver has grown beyond the $ 5-per-gig model. Fiverr Pro brings the best talent together on its platform. Depending on your skills, you can do very well here.

#24. Walk dogs

Pet sitting is one of the best businesses to start right away for animal lovers. If you live in an urban area, you can easily pick up multiple customers walking the dog or cats sitting per week.

There are networks that connect dog owners with dog walkers. Rover is one of the largest networks of dog walkers.

Of course, you can also use social media or just knock on the neighbors’ doors to promote your services, but you can easily use any of these services and it is a tip on how to make 500 dollars fast.

#25. Babysitting with Care.com

You can easily babysit when you need a business to start right away and make a few bucks quick. Parents everywhere need babysitting and nannies.

Websites like Care.com connect parents with babysitters. The company does all background checks and other due diligence to calm the parents’ minds.

#26. Sell your photos

Do you have an eye for photography? Of course, you have to be good at it to make money, but if you are, you can sell photos on ShutterStock or iStockPhoto (along with many others) to generate passive income from something you may find very passionate about.

Ask people who are looking for photographers to cover their wedding, engagement, child’s birthday, or other life events to make money faster from taking photos.

You need a good camera and some experience, but this way you can definitely make the income you need no matter where you live.

#27. Get a Personal Trainer

If you understand fitness then personal trainer business is a business to start right away. People pay good money for personal trainers if only someone keeps them on track to achieve their goals.

You can create added value and help yourself financially at the same time.

#28. Tutor students

Parents are always ready to invest in their children’s future. If you have a lot of knowledge in subjects like math, science or computers, you can teach for money.

Both Indeed.com and Care.com have the ability to teach local students. You can choose one of these platforms or you can easily find your customers through your personal network or through social media.

#29. Promote Business with a Car Wrap

Platforms like Carvertise connect brands and companies with drivers. The process is simple – arrange to turn your car into a roaming billboard for a price.

If you qualify, you can earn a set monthly fee for advertising in your car. You don’t have to pay anything for it, but you do need a clean driving record and a fairly new car.

#30. Help with Home Gardening

By offering your services as a local gardener, you can make money fast enough to meet some urgent needs. There are many ways to mow lawns and remove weeds for planning gardens and decorations.

If you address enough neighbours, you will find at least a few buyers. It will definitely be worth it.

#31. Take on House Cleaning

There are a variety of online platforms that you can access, or you can just look around your neighborhood or post on social media. You can also use Amazon’s Home Services or create your own simple, one-page website to serve ads.

Either way, this is a great way to make more than $ 20 an hour or more when doing a job that is often in high demand. You could easily make this a long-term appearance if you are performing well and not cutting corners.

#32. Become a Home Organizer

You can easily organize for people at home, an industry that has become hugely popular since the debut of Netflix’s hit series Tidying Up with Marie Kondo.

If you are a neat and organized person yourself, and you are good at organizing spaces, why not offer your services to those around you? You’d be surprised how many people, even on your own social media feed, could get you into doing this.

#33. Wash Carpets

Rent a carpet cleaning machine from your local hardware store or buy one if you think it can get enough of the job. You will likely find that many people need something like this but have not actively sought the service.

Depending on the work and trust you build with the owners, you can wash carpets in the owner’s homes or have them steam cleaned off-site.

#34. Give Blood

You can earn anywhere from $20 to $50 per blood donation, depending on whether your blood type is rare or common. You can also donate plasma. Different states have different minimum requirements that must be paid when people donate plasma.

Donating plasma helps people struggling with leukemia and other immune diseases. This is a little more complicated and complicated than donating blood, but you don’t get much more than donating blood.

#35. Decorate Houses for Holidays

Whether it’s New Year Day, Christmas Lights, Easter, July 4th, or any other holiday, you can get paid to decorate homes. This can include putting up lights indoors or outdoors, decorating trees, putting up games, and decorating.

Use the internet and social media to find customers, or just advertise on your local network. There are many ways to do such special jobs.

 #36. Painting

Painting is a chore that many people don’t have time to do, which makes it a great business idea to make money fast.

The painting job is easily scalable. Once you have the clients, you can hire people to work with you while you manage them. Either way, it’s relatively easy to work and there’s always a demand for painting service.

#37. Repair Broken Screens

Repairing broken screens is a profitable business idea. You can start repairing phones and other tech gadgets and offer screen replacement services. You can earn up to $500 per day depending on the number of gadgets you repair.

#38. Rent your guest room on AirBnB

Airbnb can be an excellent platform for renting a guest room. If you live in a tourist destination, you can make good money on this platform.

If you don’t mind the neighbors this is definitely an option. You can crash out with friends and family and rent out your entire house if you’re really desperate.

#39. Swagbucks

This is a unique business idea that can make money fast. You can get started on Swagbucks. On Swagbucks, you do a number of things to earn points. You can earn points by searching the internet, completing surveys, watching videos, or playing games.

Swagbucks also gives members points for online purchases. After you’ve earned a certain number of points, Swagbucks pays you to your favourite store in the form of a gift card, or a cash deposit is made to your PayPal account.

#40. Gigwalk

By signing up on Gigwalk, you can start making money on your phone right away. Gigwalk helps companies ensure they advertise in a way that attracts customers. As a gigwalker, you may be asked to snap a picture of a product display stands in a local store or a menu in a restaurant.

Gigwalk gigs cost between $ 3 and $ 100. The better you complete your appearances, the more highly paid appearances you can be offered.

Businesses that Make Money Right Away- How To get Started

Choosing the path of entrepreneurship can be very challenging. It requires building a business from the ground and getting it up and running is serious work, however, there are ways to ease the stress. First is getting a business mentorship; every successful entrepreneur you see today has who they look up to.

Before you can run any business successfully, you must get a business plan; this will help you discover any weaknesses in your business idea so you can address them before you open for business.

You don’t have to get overwhelmed trying to draft a business plan for your business, with the business yield generator, you can get the best business structure that suits any business type.

Business Yield Idea generator

What makes this the best anyone can find online is that this generator is purely done by humans not a set of algorithms or Artificial intelligence.

Humans gather data and do quick but detailed research

based on the information you provide. It’s simple, answer a set of quick and easy questions and your business ideas will be on your email in less than 24hrs.

24hrs because this is the most feasible idea generator as it takes into consideration, your budget, intended startup locations, talents and skills, the available time you can give the business, etc.

Based on these data with an extensive feasibility study and just a little token, you would have a list of ideas sent to your email with links to give you access to instant business plans, Business model canvas, and up to 3 years financial analysis to help you get started for the business.

Click on Business yield idea generator to access top business plans that will benefit you.

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Business start up from scratch for beginners (+ how to start guide)

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A business start up refers to a company or brand that is in its early stage of operations.

Investopedia defines it as ‘companies or ventures that are primarily focused around a single product or service that the founders want to bring to the market’.


This blog post answers the questions any young aspiring entrepreneur might have including: the list of things required to start a business, how to start a business at home, steps to start a small business.


If you have no clue as regards starting a business, then this blog post was specially written for you.

Grab a note, and a pen, let’s dive in.


What does business start up mean?


When the word start up pops up, what comes to mind?


Oh well, before we go into proper definition; let’s look at some really important details of a start up:

• Often funded by founders, sometimes families, and friends or by using venture capitalists.

• It is always the initial stages of building a company

• The first few years of are very important for start ups, this is the time where these entrepreneurs concentrate on raising capital and developing a business model.

• Many start ups fail within the first year. Oh yeah, they do. That’s why you need to get started on the right foot, and this blog post has got you covered, so keep reading.


So, what are the right definitions of a start up?


A start up is a very amateur, or young company founded by one, two or more entrepreneurs to develop and bring a unique product or service to the market.


Wikipedia defines it as a ‘company or project begun by an entrepreneur to seek, develop, and validate a scalable economic model’


Now that we’ve laid the foundations of start ups and starting a business, it’s time to look into the list of things required to start any business.

See also: 5 Things You Must Do Before Starting a Business.


List of things to start a business


The good news is that all of the things that need to get done in order to develop an idea to a business have been done a million times before.


A lot of other businesses have crossed that path, so even if you want to get started from scratch you don’t need to reinvent the process, or waste brainpower on figuring out what to do.


The only thing you need is the right information.


I assume that you already have a business idea in your head you’re wishing to turn into a business.

You don’t expect to build something out of space, right?


Without further ado, let’s look at some of those things required to start a business:


1. Refine your idea


Refining your idea has to do with doing a quick research into the market you’re going into.


You’ll have to learn everything successful brand leaders have done, figure out if the market is too saturated, figure out what you can do differently, figure our your target market, and most important, know the ‘why’ of this business.


To get started right, you have to bring something different to the table, which is why you’ll need to get a solid business idea and a business plan.

2. Write a business plan


You’ll need to answer questions as regards the business you’re going into.

You need to ask yourself few important questions like:


Why am I starting this business? Who are my target audience? How much will it cost to get started?


These questions need to be answered in a well written business plan.

It’s always wise to pay the professionals to get this done for you.


Other elements a solid business plan should have include:


• Executive summary


• Market evaluation


• Market strategies


• Operational plan


Our business idea generator gives you access to instant business plans, business model canvas and up to 3 years financial analyses to help you get started for any business.


Click here to get started with our business idea generator


See also: Download 500+ business plans for any business.

3. Consider your risk appetite


Many businesses come with risks.


That is why it’s always a good idea to consider an exit strategy as you compile your business plan.

It helps you figure out how it will overcome any potential difficulties and what you need to sustain it.

4. Consider the costs


Starting any business requires capital, so you need to determine how you’re going to cover the costs.

Are you going to be working with a team? You’ll have to consider the cost of paying these people.


Many start ups fail because they run out of money before turning a profit.


Also, learn to watch your expenses so you don’t overspend when starting a business.


Other important list of things include:

5. Determine your legal business structure

You’ll need to get your business registered and recognized with a legal structure e.g Corporate Commission Affairs (CAC)

6. Build a team

Proceed to building a team and invest time and resources in training the people you intend to work for you.

7. Brand yourself and advertise

Good branding is always important for any business to thrive.

If possible, hire a brand strategist.

8. Grow your business.

Review the strategies intially put in place, continually see to the growth of your business.


Due to the pandemic, a lot of entrepreneurs have moved to working from home.

Starting a home based business can create flexibility in how your money is spent and how your time is spent.


To create a home based business that will yield profit, you’ll need to invest time and resources into finding out the right business for you and creating a plan.


Let’s take a look at some of the important steps:


How to start a business from scratch at home


1. Evaluate your skills and talents


A great way to start a home based business is to brainstorm your existing skills and how you can leverage on them.

You might also need to acquire other skills that will aid the work you choose to do from home like gaining tech skills.

2. Come up with a business idea


You’ll need an idea to start a business.

If you don’t have an idea yet; our Business Idea Generator is the best tool to use to develop an idea that suits your personality.


These ideas will come from the skills and talents you already possess. You’ll need to focus on evaluating your previous experiences.

3. Identify your target market and audience


Your target market is a particular group or segment of the population that are most likely to buy from use or use your services.


A good way to identify these people is to develop and create customer personas.


A customer persona is a fictional representation of your ideal customer based on psychographics or demographics research.


Other important steps include:

4. Research your competitors

5. Define your unique value proposition

6. Build a budget

7. Build your office

8. Get registered with a legal structure

9. Advertise your business

Market your home business leveraging on tools like social media, creating a Google my business listing, creating a website, and creating a word of mouth program.


Steps to start a small business


Starting a small business is not always as easy as it looks.

We have listed eleven important steps you can take to start your business – covering everything you need to know to run a successful business start up from scratch.


1. Conduct a market research

2. Get the necessary skills required to run your business start up from scratch

3. Write your business plan

4. Fund your business

5. Choose a business name

6. Register with a legal structure

7. Open a business bank account

8. Set up your business

9. Set up your space

10. Get a mentor


11. Spread the word about your business


Now that you know the foundations of starting a business start up from scratch and a list of things you’ll need to get business started, go into the world and prosper.

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Family Business Succession Planning: Creation, Template, Model, and Sustainability

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Family Business Succession Planning

Introduction

Many family-owned businesses don’t make it past the second generation, and only a few get to the third. The primary reason is the lack of family business succession planning. 

If you own a family business, you may be wondering how to prepare the next generation to take over. However, in this article, we’ll share insights about family business succession planning. Additionally, you’ll learn how to create a plan that’ll be sustainable in your absence. 

Succession in most family-owned businesses operates around the assumption that the next generation can successfully run the company as the predecessor did. However, this idea fails to account for the fact that each new generation has different leadership skills, abilities, and interests. 

Also, there’s the factor of the business context that shifts or evolves, which businesses fail to consider. Here is where family business succession planning becomes relevant. 

What is Family Business Succession Planning?

Family business succession planning is a process where a family-owned business devises strategies to hand over the reins to a next-generation family member. A succession plan is why multi-generational family businesses have a firm staying power. From one generation to another, they keep upholding the organization’s vision and founding principles. 

Therefore, heads of family businesses need to start planning for their successor as soon as possible. The reason is that it may take years to groom a strong and capable leader. Also, the more time business owners spend executing a succession plan, the smoother the transitioning process will be.

Read Also: Corporate Level Strategy – Definition and Types

The Creation of a Family Business Succession Plan

Michael Evans of the Newport Board Group recommends five significant steps that family-owned businesses should follow, to create a viable succession plan. These steps also comprise several mini-steps, and they include:

Establish Goals and Objectives

Leaders of family businesses should first identify clearly the visions, goals, and objectives of the organization. This step also addresses the importance of continued family involvement in leadership and the option of bringing in external professional management. 

Additionally, the management team should consider retirement goals and the cash flow needs of exiting family members. Likewise, they should take into account the personal and business goals for the incoming generation.

Establish a Decision-making Process

This step identifies and establishes, in a written document, the process for involving family members in the firm’s decision making. It also lays out procedures for resolving disputes.

Establish the Succession Plan

In creating the succession plan, management should identify successors- both managers of the company and owners of the business. They should also define each family member’s role, either active or non-active, and any additional support the successors may require.

Create a Business and Owner Estate Plan

This phase addresses any tax implications to the owner or business upon transfer of ownership, death, or divorce. It also reviews the owner’s estate planning strategies to minimize taxes and avoid delays in stock transfer. Furthermore, it should create a buy or sell agreement that is fair, reflective of the business’ value, and tax strategic.

Create a Transition Plan

The business owner should consider the options of an outright purchase versus a gift/inheritance, or the possibility of combining both options. This step also considers external financing or self-financing from the retiring owners in case of a sale. Finally, the business owners should establish a timeline for implementing the succession plan.

Family Business Succession Planning Template

Family business succession planning may seem difficult to carry out. Therefore, most family-led organizations employ the help of professionals like lawyers and accountants when crafting a plan. 

However, if you’d like an easy way to go through the process yourself, you can use a planning template. There are several of these templates online, either for free or a small fee. A template makes the planning process a breeze, and also gives the succession plan a professional look. 

Family Business Succession Planning Model

A succession planning model helps illustrate the family’s interaction on management and ownership of the family business. A simplified model, called the Three Circle Model, consists of the ownership circle, the management circle, and the family circle. 

Three circle model of family business succesion planning

These circles represent the interaction/impact that each component has on the family and the management of the business. It also illustrates the relationship between each element and the other. Furthermore, it shows how they meet in the middle, indicating a mix of family, ownership, and management at some point in the business.

From the circle, it’s easy to see how the three components’ interaction can create challenges and provide unique opportunities. Therefore, the family business’s ability to transfer ownership to the next generation depends on the management of the family component.

Read Also: Concept of Management in Business

Sustainability in Family Business Succession Planning

If you run a family business, you’ll want to give your company the best chance at a transition. Most importantly, you’ll want to ensure that the business thrives for several generations after your exit. To ensure the sustainability of a succession plan, consider these tips.

Plan Early

Sustaining a succession plan begins with the timing of crafting the plan. As a rule of thumb, you should prepare a succession plan at least ten years ahead. The earlier you plan, the better your chance to mentor the successor and the smoother the transition process.

Involve Family Members

The best way to avoid discord among family members is to involve them in the planning process. It also helps you identify which family member wants to be involved in the business or intends to pursue other careers. 

Be Realistic About Picking a Successor

While it may be your desire to leave the business to your first-born, he/she may not have the necessary managerial skills. So, it’s best to do an honest assessment of which family member is capable before picking a successor. 

Train Your Successor

A succession plan can’t be sustainable without training the next generation to take over the business. Consider dedicating some years to work with your successor while teaching him/her the required business skills.

The Bottom Line

Irrespective of how successful a family-owned business becomes, leadership roles must change someday. This event may be voluntary, as in the case of retirement or involuntary, such as death or incapacitation. However, a succession plan ensures that the business will continuously operate with no disruptions and minimize tax implications for all parties. 

Business leaders should start building their exit strategy right into their business plan. Firstly, long-term succession planning helps businesses determine how well the successor can execute management tasks and gives them time to learn. Lastly, it helps to facilitate an orderly transitioning of management and ownership.

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