Tips for family businesses in the digital age

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Some of the most powerful companies in the world are family businesses.

It is a business model that has yielded great results and is in the same category as other companies undergoing digitalisation.

What advice should family businesses follow if they want to see new generations?

Family businesses in the world
Are you surprised to know that 90% of Spanish companies are family-owned ?

It seems that business and family are two things that should not be mixed, but the reality is that blood ties are one of the most common ways to enter the market.

And in the rest of the world it happens exactly the same.

Marriott, Walmart or Estee Lauder are family businesses where personal matters have a lot to do with professional ones.

All of these family businesses face the same challenges, well summarized by Professor Josep Tàpies , holder of the IESE Family Business Chair:

Suffering from DNA syndrome
Just because the founder of the company is a good manager does not mean that his successors will be.

Many companies have learned this the hard way, some of them well known in our country.

Confusing bonds of affection with contractual ones
Separating the family and business spheres is essential for business to thrive.

Fortunately, these types of businesses are increasingly supported by bodies that help manage both spheres.

Not respecting market rules
Employees are hired for what they are worth, not who they are.

When an employee is compensated above his worth because he is family, problems are quick to arise.

Delay the succession
Who will replace the founder is one of the great challenges of any business of this nature, a email database lists poland s revealed by the numerous studies on family businesses that have been carried out around the world.

Raising the issue early is key to a successful transition.

Trusting that "it won't happen to us"
Feeling comfortable with all of the above points only creates the false sense that the family business is safe.

Unfortunately, as in many other areas, accommodation reduces competition.