AvS Advisors’ Post

Ever wondered what sets thriving family businesses apart from the rest? 🌟 A recent article revealed that 3 in 4 family businesses expect to grow this year. This statistic is not just a number; it's a testament to the resilience and adaptability of family-owned enterprises. But what are the key drivers behind this optimistic outlook? 🥇 Strong Leadership: Family businesses often benefit from a deep-rooted sense of leadership. When the next generation steps up, they bring fresh perspectives while honoring the legacy. This blend of tradition and innovation is a powerful growth catalyst. 🥈 Unified Vision: A shared vision creates a strong foundation. Family businesses typically have a unified goal that everyone is committed to. This alignment not only fosters a cohesive work environment but also drives collective efforts towards common objectives. 🥉 Adaptability: The ability to pivot and adapt is crucial. Family businesses are often more agile, making it easier to implement changes swiftly. This flexibility allows them to seize new opportunities and navigate challenges effectively. These insights are not just applicable to family businesses. Any organization can benefit from strong leadership, a unified vision, and adaptability. As a woman owned-family bookkeeping business, we see these opportunities weekly in our firm. So, how can you apply these principles to your own business? What steps will you take today to ensure your business thrives tomorrow? Share your thoughts in the comments below and let's inspire each other to grow! 🚀 #Leadership #BusinessGrowth #Networking

Family Business Family businesses have played a significant role in shaping America’s economy and society. They account for over 50% of the U.S. Gross Domestic Product. Family businesses contribute to local communities and create jobs, which makes them essential for economic growth. Approximately 35% of Fortune 500 companies are family-controlled, representing a wide spectrum of American businesses. Family firms seem to mobilize their resources effectively, making them more adaptable to change. This resourcefulness helps them navigate uncertainties. Family businesses often take a long-term view, which aligns with sustainable growth. Their commitment to legacy and continuity encourages strategic decisions that benefit the company over generations. Family businesses have left an indelible mark on America’s economic landscape, by combining hard work, tradition, and innovation.

8th Tip to Run a Successful Family Businesses: Plan for the future: Successful family businesses don’t just let the chips fall where they may. They plan for the future, creating family business succession plans long before they actually need them. They also identify talent in employees, both within and outside of the family, investing in them early on to ensure excellent leadership in the future. #familybusinesses #governance #generations #successionplanning

8th Tip to Run a Successful Family Businesses: Plan for the future: Successful family businesses don’t just let the chips fall where they may. They plan for the future, creating family business succession plans long before they actually need them. They also identify talent in employees, both within and outside of the family, investing in them early on to ensure excellent leadership in the future. #familybusinesses #governance #generations #successionplanning

In family businesses, founders and their successors need to assume the responsibility of role models for leadership based on meritocracy. Otherwise, nepotism may promote a culture of redundant employment or even improper financial practices. That’s the 14th of 18 guiding principles that family office management veteran Alvin Yap will dive into at our masterclass on Family Wealth Preservation & Business Succession. #familyoffice #financialplanning #FamilyLegacy #WealthPreservation #trusts

Did you know? 📉 Family businesses are often built on dreams, dedication, and a deep commitment to something bigger than ourselves. Yet, 70% of these businesses don’t survive beyond the second generation. Why is that? It’s rarely just about financial challenges. Many family-run enterprises struggle with issues unique to them—balancing family roles and responsibilities, resolving conflicts, and preparing the next generation to step up with confidence. Ensuring a family business thrives across generations requires more than just passing down a title or ownership. It’s about creating a sustainable roadmap, involving the next generation early, and nurturing a shared vision that aligns with both family values and business goals. Are you ready to ensure your family business doesn’t just survive, but flourishes for years to come? Let’s explore strategies that can make a difference—from clear succession planning and open communication to mentoring the next leaders. Together, we can break the cycle and build a legacy that stands the test of time. 🌱✨ #FamilyBusinessJourney #LegacyMatters #BuildingForGenerations #FamilyBusiness #BusinessLegacy #GenerationalWealth #SuccessionPlanning #Success #Strategies #Business

Coming up in the September 2024 issue of Family Business Review, a new research article from Family Enterprise Legacy Institute (FELI) members exploring relationship dynamics and their crucial role in determining whether the family acts as a valuable asset or a potential liability to the family business. "Social Exchanges in Family Businesses: A Review and Future Research Agenda" by Ritu Virk, A.J. Corner, James G. Combs and Peter Jaskiewicz also highlights strategies for actively managing relationships to foster better business outcomes. The Family Firm Institute - FFI members get early access now! See here for more details: https://lnkd.in/deN3fQtA #familybusiness #businessfamilies #familyenterprise #research #relationships #business

Cousins Coordination Stage in Family Businesses: In a true Cousin Collaboration in Family Business, the cousins come together because it’s something they want to do. They aren’t coerced by their parents to do it, and while they may be influenced by their history and the legacy that the business represents, they don’t feel bound by their history and that legacy. They also know they have the freedom to opt out. By this time, the family has probably given deliberate attention to liquidity issues and drawn up guidelines whereby family members can sell shares. A goal of the Cousin Collaboration is to make remaining an owner so satisfying that opting out is rare. Maintaining the commitment of shareholders is important because doing so helps to hold the family together and to retain financial and leadership resources for the business. It represents the next generation of the healthy family/healthy business paradigm necessary for family business success. #FamilyBusiness #governance #strategicleadership #generations #successionplanning #sustainability #talentdevelopment

Cousins Coordination Stage in Family Businesses: In a true Cousin Collaboration in Family Business, the cousins come together because it’s something they want to do. They aren’t coerced by their parents to do it, and while they may be influenced by their history and the legacy that the business represents, they don’t feel bound by their history and that legacy. They also know they have the freedom to opt out. By this time, the family has probably given deliberate attention to liquidity issues and drawn up guidelines whereby family members can sell shares. A goal of the Cousin Collaboration is to make remaining an owner so satisfying that opting out is rare. Maintaining the commitment of shareholders is important because doing so helps to hold the family together and to retain financial and leadership resources for the business. It represents the next generation of the healthy family/healthy business paradigm necessary for family business success. #FamilyBusiness #governance #strategicleadership #generations #successionplanning #sustainability #talentdevelopment

Business is not family... unless it's a family business. According to an HBR article, “Family businesses are the cornerstone of most national economies. They can create jobs, spur innovation, and drive superior returns.” No two are alike. Each family has its own unique make up of history, values, and way of doing business. Although the specific details of benefits and challenges differ, several approaches to the mixing of business and family have proved to be successful for most. These are some of the best approaches to ensure your family business is successful. ➡️ Agreed Rules and Values Ensure everyone is on the same page with the company values and how you plan to operate. Families should have differing opinions in life, not in business. ➡️ Roles and Responsibilities Each family member should have clearly defined roles and responsibilities. Assign roles based on skills and qualifications, not just family ties. ➡️ Communicate Early and Often Maintain honest and frequent communication. Keep everyone informed about important company decisions ➡️ Structure Governance Create formal governance structures such as a board of directors to make key decisions and resolve conflicts. Document policies for clarity and fairness. ➡️ Don’t Avoid Conflict Family members may hesitate to air their issues for fear of damaging relationships. Not talking about them will do more harm than good. Talk to an advisor or coach to help with these issues. ➡️ Succession Planning Start succession planning right away. Consider who has the necessary skills and best interest in the business to keep it sustainable for generations. Lest you suffer the outcome of the HBO Max show "Succession." Implementing these tips can pave the way for a thriving family business. You can create a business that’s not only successful but also strengthens familial bonds. #familybusiness #business #succession #successionplanning #strategy #leadership #coaching Trajectify