I know of a chief executive officer here in Ilorin who celebrates his 50th anniversary, and he was gifted a brand new Mercedes Benz for being an instrument to the family's uplifting. What he did primarily was to sponsor all his extended family through their studies and fix those he could in available business enterprises. His story of breakthrough is for another day when I will be doing more justice.
FAMILY BUSINESS
This is a business that is run by close relatives bound by blood. The number of family members may be as little as two or three (preferred) to as many as ten. Family businesses are usually run on sentiment and have the advantage of compassionate support when needs arise, in contrast to when the chips are down and there are fallouts. Maybe I'll mention a few of such instances below.
EMPOWERMENT ACTIONS
Empowerment involves equipping an individual with needed support as it relates to intended business ventures. I want to side with youthful empowerment, which can range from as minute but relevant as education. Most often, adults do come together for empowerment, and although there's expected wisdom from this set of people, empowering youth, especially children, stands a greater prospect of gains as they are likely to develop over time to be more impactful to society. Thus, my empowerment action would begin with educational empowerment for family members, especially the children. This way, the intellect and wealth of a family can be sparsely and diffusely diluted to accommodate many members of the family, leaving nobody as a liability. It would be easier and less hectic when intellectuals were brought together to start a family business. Dealing with illiterates or family members with little or no understanding of businesses has a chance of plummeting business ventures.
Sponsor empowerment, not just giving them the money they want.
Most family members have ideas that are most likely raw and unfinished, yet they want to pioneer or ask for investment funds. Many of these relatives may not even have administrative skills in business, and they may be like ticking bombs set to explode when wrongly tampered with. Family members should empower relatives to learn the intricacies of businesses before incorporating members into family businesses. Mediocre, or the incorporation of relatives based on sentiments, is a risky step and may negatively impact a business.
Though my relatives are not into any family businesses, I have a bias against family businesses. Unfortunately, my brothers and I have not intensified our efforts to establish businesses, probably because we are all professionals and busy with our work. Would I want any relatives to manage our family businesses? Such would be an extended family, and I would rather not involve myself, as most experiences with people have been unpleasant.
FAMILY PAPERWORK
Have you heard that business should not be mixed with pleasure? It is difficult to blame relatives in businesses, but it is not out of place to have legal documents that would protect the interest and capital of each relative. Running a business as a family should be void of laxity or sentiments, and a mark of seriousness should be put in place. Shareholder formulas or investments should be adequately documented, and returns should be appropriately shared when due.
ENGAGING EXTERNAL BODIES
There is nothing wrong with engaging the services of non-blood relatives, as this may be necessary for transparency. Sometimes, family businesses may not even require the active presence of relatives; however, they may be part of the governing body or board. There are times that experts like auditors would be engaged to audit family business transactions. Some issues, like those aforementioned, are better handled by independent and external auditors.
FAMILY BUSINESS FALLOUT
We cannot rule out the fact that errors can happen in family businesses, just like in normal businesses out there. When there is a serious mistake that bankrupts the business, who takes the blame, or what happens to the business? Fallout in businesses has a tendency to tear relatives apart when disagreements come up.
WEALTH CIRCULATION WITHIN THE FAMILY
Family businesses have a high tendency to circulate wealth among them and, like an empire, keep expanding. It is commendable, as there is likely a chunk of wealth to be transferred or inherited by generations that come after.
Here is my entry into #aprilinleo monthly and daily prompts. You can participate via this LINK
Thank you for reading. I would love to have your comments and contributions.