New England Paving on How to Pass Ownership in a Family Business

Many businesses in New Hampshire are family enterprises. When older family members need to step down, changing the guard at a family business can be a difficult proposition. Choosing the right person to carry the business into the future will point toward success in the years to come. Established family businesses like New England Paving are a good example of how these companies should be run.

Taking over a family business is a less risky proposition than starting your own business. As many as 96 percent of new businesses fail over the first ten years of operation. Taking over an existing business eliminates these unstable years and allows you to get started with a ready-made profit model.

Choosing the Right Direction

People who often find themselves taking over the family business, have grown into their role over the years. By these individuals molded from a younger age, they were able to see how the business was conducted on a first-hand basis and slowly start to integrate themselves, by being involved with different parts of the business. This allows for the individual to learn the basic skill set of running a company but also gives them the opportunity to bring forth new and fresh ideas that help to elevate the business even further. It is great to be able to find that balance between keeping the generational wisdom but also creating ways to allow the business to grow in a competitive environment.

Handling Conflicts

There may be a conflict with the prior owners of the business when they are convinced that it is not being run in the same way they would have done it. Updating the business’s systems and the way it markets itself to prospective customers can be upsetting changes for retiring business owners. They may feel that their ideas are being thrown out and that their child or grandchild is writing off their contributions.

Handling this requires tact and diplomacy. Communicating with the outgoing owners of the business needs to be kept to the facts. Data about how the business will benefit from these changes may help the older generations accept them. For example, transitioning from an obsolete mail-order company towards more online sales is a crucial move in today’s market. The competition will change completely.

Preserve Company Culture

Older owners’ skills and contributions should not be thrown out in the transition. Years of experience in New Hampshire may help new owners solve difficult problems. Allow older owners to stay on in an advisory capacity unless it causes problems with the chain of command.

Maintain Credibility

When a new owner comes on the scene, existing employees may be resentful. They may be wary about how the business will be run with a new owner. Be sure that you work just as hard as your employees and ask them to share important information that they have learned during the course of their employment. Respecting employees will go a long way toward building goodwill within your business.

Seek Outside Help

Use the experience of outside experts to help you with the transition. Relying on your peers will help you become more experienced in your field of business. Chambers of commerce, trade groups, and informal sit-downs are all great ways to get new information. Having someone to turn to with questions is a great resource for all business owners. These networking opportunities will also allow existing New Hampshire businesses to get to know you as the new owner of your company.

Generations of Success

With proper succession planning and attention to the issues that may come up during the transition, new family business owners will be able to succeed far into the future. Businesses like New England Paving have continued to flourish through family transitions, providing a good example for New Hampshire businesses to follow in their footsteps.