Strategy is the heart of business success, more so for family business as it involves not only business strategy but also needs to deal with the unique challenges that the business faces from ownership and family perspective.
Some of them being:
- Separating family and business issues while developing a strategic plan
- Buy in from all family members to follow guidelines
- Developing common goals among family members
- Need to periodically review the business strategy as per the changing market environment to stay relevant.
For a family business to survive through generations, it needs a strategic plan to keep it grounded to succeed. It is a commonly developed vision for the future which identifies:
- Important issues to be addressed
- Sets goals
- Develops an action plans
- Implementation plans
Components of a Family Business Strategy Plan?
It is a well-thought-out document that specifies the process to which the family business will follow for continued success.
It includes points like:
- Defining the customer and market segments
- Strategies for retaining as well as getting new customers
- Norms for delivering requisite customer service
- Identifying and onboarding the right talent for successful execution of the plan
- Practicing financial prudence to retain profitability
- Being relevant to the ever changing market demands
- Periodic structured reviewing for understanding the effectiveness of current business tactics and guidelines for determining if procedures should be altered
Do you know “What is your family business strategy?
For this to happen you need a vision for the future and also a plan for determining how the business will get there. A strategic plan is not just a document created and discussed in an annual meeting. It needs active actions. Successful family businesses encourage and promote the business strategy and actively make adjustments in it when needed. Developing a business strategy is complex and challenging, but it is essential for the continued success of any family business.
Does Your Family Business Need Help?
With extensive hands on experience of assisting family businesses, we understand the wide variety of challenges that families face as they work together to build, grow and sustain a thriving family business generation after generation. Through orientation programs, one to one as well as common meetings, workshops, public talks, mentoring, coaching, Family retreats and private family business consulting services, we help family business owners chart their way through family business issues of all shapes and sizes.