Nine usual excuses to stay stuck, Part Two
Last week, we addressed four excuses that family businesses usually give to stay stuck in a rut, even if they say they need to innovate. The excuses are: The economy is uncertain; the family lacks expertise; the family lacks money; the plan is still not perfect.
Let us look at three more excuses.
Too Old and Tired
“The new venture sounds great, but it takes too much work. We are too old to start something new. We are tired and just want to retire.”
If you are unwell, then it may indeed be wiser not to start anything new. However, some entrepreneurs believe that dealing with a challenge is a good way to divert their minds from dwelling too much on personal troubles.
If you are tired, then you need to rest. Take as much rest as you need, however long you require. If you have chronic fatigue, then you have to pace yourself. As Fr. Ben Nebres, S.J., former Ateneo de Manila president, says: “Life is a marathon, not a sprint.”
But many entrepreneurs become uneasy if they take a vacation of more than two weeks. Even if they find it hard to believe, they usually miss the hustle and the bustle, and yearn to go back to work after some time.
As for retirement, studies show that if entrepreneurs are forced to retire, they tend to deteriorate quicker (in body and mind) than when they were active. Even multiple rounds of golf or constant travel do not make them healthier. If you are planning to retire, then rest for a while, but afterwards, keep yourself active. Many entrepreneurs become philanthropists, some write their memoirs, others start new ventures.
“We are a conservative family. We don’t take unnecessary risks. It is OK for us not to grow rather than risk failure.”
Like individuals, families also have personalities. Some families are more wary than others about experimenting on new ideas. It may be impossible for them to diversify into new products, or even introduce new methods to the existing business.
But you know that the moment you stop innovating, then you start stagnating. New ideas are born every second, and family enterprises that do not adapt to change will not survive. You say that it is fine for your business to just maintain its regular earnings, but with inflation and the changing rules of taxation, just maintaining ordinary profits may not be enough.
You may choose to believe that you are keeping the business stable, but in reality, you are already deteriorating. Like it or not, you have to learn to adapt.
Family Quarrels
“We are interested in diversifying into a new product, but we are quarreling as a family. We don’t even communicate effectively, so how can we make decisions?”
Family squabbles are often inevitable, and they do not necessarily harm relationships, especially when members share underlying respect and affection for each other. But it is true that sometimes, family conflicts escalate to the point that the business starts to suffer, sometimes irreparably.
If the conflict is extremely serious (in some cases, the parties are taking each other to court), then there is of course no way to go into a new venture together as a family. In this case, the wisest course is to separate the family business into smaller ones, divided among conflicting parties. In a family enterprise with various small businesses, this can be done. For instance, one sibling gets food, another sibling gets real estate, and another one gets the school.
A natural problem arises though: equality. Unless the businesses are valued right (by an impartial outside party), then the di vision of spoils can get bloody.
If the quarrels are regular occurrences, but not serious enough to threaten family relationships, then things can be settled amicably. Get a mediator, perhaps someone in the older generation who is respected by all and perceived to be fair. Or get an outside mediator, a psychologist, counselor, or business consultant who can keep a cool head and act as referee when necessary.
Your family can try asking the help of a consultant who can help guide members to create a family constitution, which, upon the written agreement of all parties, will become the blueprint to ensure smoother flow and conduct of family business relationships.
The constitution can contain provisions for new ventures. As a family, you can decide what parameters to set, what requirements to meet, what safeguards to pursue. Coming together to do a constitution will likely strengthen family bonds, and the family can have peace of mind in innovating and diversifying their businesses.
(To be continued next week)
Queena N. Lee-Chua is on the Board of Directors of Ateneo de Manila University’s Family Business Development Center. Get her book “Successful Family Businesses” at the University Press (e-mail [email protected].) E-mail the author at [email protected].
