Succession is an integral part of any business and is even more vital when family-owned. In fact, only 30 percent of family-owned businesses make it to the second generation, and only 10-13 percent make it to the third.
There are many reasons for this statistic, but one of the most common is that the family members who take over the business are not adequately prepared to do so. They may not have the necessary skills or experience, and they may not have been groomed to take on the role of leader.
If you’re the parent of a child who will one day take over your family business, it’s crucial to start preparing them now. Here are some tips for raising your child to be a successful business leader:
Enroll Them in An International School
International schools provide a globally focused education that prepares students to succeed in an increasingly interconnected world. They also offer a more well-rounded education than traditional schools, emphasizing leadership, entrepreneurship, and other skills essential for business success.
However, many parents tend to skip international schools due to costs. While it’s true that international schools can be expensive, the investment will pay off in the long run. Not only will your child get a better education, but they’ll also develop the skills and network needed to succeed as a business leader.
International schools are definitely the way to go when it comes to training your child to be a business leader. Many countries offer great international schools, so do your research and find one that’s right for your family. An international school in Dubai is known for its excellent business programs, so it could be a good option to consider. The country is home to many successful businesses, so your child will have the opportunity to learn from the best.
Make Them a Part of the Business
As your child gets older, involve them in the family business. Doing so will give them a chance to learn about the company’s inner workings and develop the skills they’ll need to lead it one day.
There are different ways you can go about this. You can have them work in various departments to get a feel for how each works. Or, you can give them specific projects to work on. For example, you can task them with coming up with a new marketing campaign or developing a new product. You can also have them give presentations to the rest of the team to sharpen their public speaking skills.
No matter how you do it, involving your child in the family business is a great way to prepare them for leadership. Giving your child responsibilities in the business will also help them build confidence and learn to make decisions. As they grow older, you can start giving them more responsibility until they’re ready to take over the business.
Prepare Them for the Future
In addition to training your child to be a business leader, you must also prepare them for the future. This includes creating a succession plan and ensuring your child is included.
A succession plan is a document that outlines how your business will be passed down from one generation to the next. It should include who will take over the business, what will happen to the current shareholders, and what changes will be made to the company.
Creating a succession plan is vital for any family-owned business. Without one, there’s a risk that the company will be sold or dismantled when you retire or die. So, it’s important to implement one as soon as possible.
Once you’ve created a succession plan, make sure your child is aware of it and knows what their role will be. This way, they’ll be prepared to take over the business when the time comes.
Allow Them to Fail
One of the best things you can do for your child is to allow them to fail. It may seem counterintuitive, but it’s a crucial part of their development as business leaders.
You’re teaching your child how to deal with adversity by giving them the opportunity to fail. They’ll learn to pick themselves up after a setback and try again. This is an essential skill for any business leader.
Of course, you don’t want your child to fail too often. But, it would be best if you encouraged them to take risks and not fear failure. In doing so, they’ll have the confidence to tackle anything that comes their way.
Raising a poised child to become a successful business leader doesn’t have to be complicated. Focusing on areas such as those discussed above can help your child develop the skills they need to succeed in any leadership role they may pursue later in life.
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