Family-owned businesses are the spine of the American economy, accounting for more than 50% of the U.S. gross domestic product. One of the central aspects of any family-owned business is knowing how to make a successful transition from one generation of ownership to the next. From assessing customer wants to keeping credit card processing fees low, there are a number of tactics that businesses need to follow in order to keep ahead of their competitors—and the smoother the transition is, the easier it will be to pass on time-tested strategies.
Here are some tips for successfully passing the torch of your family business:
Foster a constructive atmosphere. Trust and communication are what bind a family business together; without them, the simplest misunderstanding and oversights can lead to resentment and missed opportunities. A successful family business is one in which its members can communicate with each other honestly, directly, and respectfully. Consider having a weekly meeting for family members in which any issue can be discussed.
Emphasize financial security. Every family member should be assured that he or she can retire comfortably after his or her turn at the wheel is up. Don’t keep all your assets in the business, which can discourage you from going after the kind of risks that all successful businesses need to take from time to time.
Look for outside help. Long-running businesses need to stay current by paying attention to changing trends and business patterns. No business is an island, and even the most successful entrepreneur has something to learn from outsiders. Study successful businesses that are similar to yours and learn from them. Network with other business owners and swap strategies. Attend business seminars and talk to experienced consultants.
If you’re looking for ways to keep unnecessary expenses to a minimum, contact Merchant Advocate. We are a New Jersey-based consulting company that works to find the best credit card processing rates available for businesses. To learn more about how we can help you maximize your profits, call us today at (732) 727-2073.