Ep 392: Skills You Need in Running a Family Business

Sean: The first question, straight to the point - would be about family business. What skills did you find to be the most useful in managing a family business? Ven: I didn't expect that question because that's a lot of reflection. The thing about family business, they haven't been really writing any books about it, right? They tell you how to be a good employee. And I remember actually there's this really great article like ten skills you need at your job that have nothing to do with your work. So I was thinking just now like, what are the ten skills that entrepreneurs should have that have nothing to do with business, right? 00:01:28 Ven: So I would always think the first thing I would probably say when it comes to family business, in particular, is your ability to manage your relationship. So you have to know your parents, you have to know your siblings and your children in the future. So I had the benefit of having a good example for my parents Ven: So one of the conclusions my sister and I had when it comes to succession planning, in fact, it's actually succession planning is actually good parenting. One of the things I think that's essential if you're running a family business, it's different if you're just running with business partners is that that relationship management is really key and you need to really do a lot of 'give and take listening' also knowing the times that you're going to be able to say your ideas. So I had a good mentor in my father. He made it easier. It's not easy, but he made it easier. But for me, I had to learn how to pick my spots. Know my place. Leave the ego out the door. I think that's super important. That's going to destroy your business experience or entrepreneurial experience if you let that really affect it. So that's the first skill, I would probably say if you're really managing a family business. Ven: The second skill I wouldn't say is necessarily just in family business alone, it's really having a clear plan - clear vision. That is something that's harder for the second-gen. I'm a second-gen because the initial vision was from my parents, so I had to come up with my own view of the future and own that because you're always going to feel like I'm just following them, you know? And right now I have the right titles already - I'm president and CEO, so I need to really have that plan in place. I really need to have a view of where we want to go. So those two things are probably in a relationship and the vision is probably very important. Ven: Going back to the idea about second-gen, I think when I met you I introduced myself as a Gen 1.5 owner, not so much as a second-gen, because the true experience of me owning the business, so to speak, was really about identifying myself as a founder as well. Especially for me, because I kind of started with the business almost immediately. So I joined in the fifth year of the business. So right after college, I jumped in. I was still part of the growth journey. I saw my parents work hard. I saw them by example, you know, lead the company. And then when they turned over the reins to me as president and just last year as CEO, I really had to have a good plan already. Ven: And it wasn't an excuse anymore that, 'oh, you know, your parents are leading the way.' I became president relatively early on. I mean, it's about my 10th year already. So I've had to develop that vision. And then that's where your siblings will also follow you if they know you are heading them somewhere. You know, it's not something you take for granted. So those are the things I think are important. Ep 392: Skills You Need in Running a Family Business