Can't Take Family Out Of The Family Business

Episode 22: Family Business - Communication is Key. In this episode, Steve and Brad discuss an article on family business and how a lot of dynamics are going on when the business is passed on from generation to generation. As you start getting into second and third generations of employees, you’re bringing in additional family members, your second or third relatives, and their husbands, wives, and kids. The mission and the vision of the business may change. Communication, tradition, biases - there are a lot of problems that may occur. This multigenerational influx of people and the lack of the ability to communicate with each other and resolve conflicts may cause the small business to go bankrupt. For Brad, the biggest takeaway is understanding what the ownership structure looks like versus the operational structure because they do not have to be the same. And that is the change over generations.   Article: https://insight.kellogg.northwestern.edu/article/evolution-family-businessesEpisode Summary01:50 - In the US alone, family businesses account for 50 percent of the GDP.  04:42 - Think about the dishwasher in your home - the loading of the dishwasher. Everybody has their idea. Now you magnify it. 07:00 - As you’re passing your business down from one generation to the next, the expectations are very clear and set from that first-generation transition. 08:00 - Not only has the thought process changed from generation to generation, but the business itself has also had to change to survive each one of the generational transitions. 11:40 - Communication is key, whether it’s communicating with your mediate family or with your extended family in your business. Contact your hosts:Steve Doyle:WebsiteLinkedInEmail Brad Herda:Website LinkedInEmailThis podcast uses the following third-party services for analysis: Podtrac - https://analytics.podtrac.com/privacy-policy-gdrpOP3 - https://op3.dev/privacy