A peculiarity of our culture is to help our family to any extent we can. When we have a business, we want to hand it over to our children, for their benefit but also for our own – counting on our children to respond to this help we give them. In theory, all this is nice and seems feasible, but is it really so in practice?
Although we see families that have achieved good cooperation between their members and successfully transfer the business to their children, most families get involved in agreements that have not been made properly and that do not bring the desired benefits to everyone, resulting in the partnerships being wrecked. Before analyzing these family partnerships, let's see what are the most important points in partnerships between people.
Based on Hubbard Management System technology, these points are two:
i) the exchange and
ii) the Ability factor
- i. Exchange
Exchange means what you get and what you give in return.
Example: "I, my daughter, will give you the shop, what will you give me?" Or: "You, my son, will take this apartment, but what will you offer me?"
It is not necessary for the exchange to be officially recognized by the commercial world. That is, if the apartment is worth 100.000 euros, this does not mean that the parent definitely wants to get 100.000 euros back. It is enough that the parties involved, parent and child, are happy with the final result.
As stated in the Hubbard Management System,
We have four types of exchange:
a. The criminal exchange, where you get something without giving anything back.
b. Partial exchange, where you take something and give something
something less than what you get.
c. Fair exchange. Here you take something and give back something of equal value.
d. The exchange in abundance, where the one who receives feels that he has received much more than he gave.
This last is the exchange that brings expansion and abundance to relationships and businesses. The other types of exchange sooner or later bring contraction.
(For more data on the exchange, you can also refer to the article "Freedom and Intelligence".)
If the exchange between family members does not fall into at least the third or fourth category, then the deals will end in failure, with the expected consequences for the family business.
- The Ability factor
The parent asks our consultant: “Is it right for my child to take over the management of the business?” Our consultant then asks the parent: “Does your child have the appropriate knowledge to take the reins of the business?” If so, then the second question is: “Can your child take on the responsibility, moral and material? For example, is he willing to lose something of equivalent value if he fails? If the answer here is yes, then we recommend that you train your child to take control of your business.”
If the answer to both questions is no, then handle the situation so that the child acquires the right knowledge and assumes the responsibility that he or she should assume. As for responsibility, the child must lose something correspondingly and feel pain if he or she sends the business to the rocks. The reverse is also true here. That is: If someone working in your business has the necessary knowledge, is competent in his or her position and assumes responsibility for what he or she does, then give him or her control by making him or her a managing director or even a partner, otherwise he or she will leave you.
You will tell me: It's not that simple. That's right. You need consultation and effective knowledge.
article source
https://alexalemis.gr/oi-oikogeneiakes-epicheiriseis-kai-ta/
photo Greek Radio FL
