How to Build a Family Business That Lasts
Father George Rutler, a priest of the Catholic Church and an author with expertise in family businesses, offers advice on how to maintain success in this field. His tips are based on his personal experience and the research he has done with other business owners. Father Rutler’s ideas can help any family business grow and flourish for generations to come. He believes that these are factors that contribute to success: character, competence, and capital. He discusses six keys that can help any family business succeed in the long run.
The first key is to have a good character. This means being honest and principled in all dealings, both within the family and with the outside world. It is also important to be humble, recognizing that no one is perfect and that mistakes are normal. A family business that embodies these qualities will be respected by others and will have a good reputation.
The second key is to have competence. This means using one’s God-given talents and abilities, particularly in the family business. It also applies to other aspects of life, such as having a vocation or being a good parent, to be successful in all areas of life.
The third key is to have capital. This means having the financial resources to sustain and grow the family business. Without capital, a business cannot survive. A family business is run differently than a public company, and it is important to have the financial stability to withstand tough times.
The fourth key is to have communication. This means that all members of the family must be on the same page concerning the business. They need to share the same values and goals, and they need to be able to communicate openly and honestly with each other. Misunderstandings are inevitable, but they can be minimized by having an open dialogue throughout the family.
The fifth key is to have continuity. This means passing on responsibility gradually over time so that every member, young and old, has a chance to contribute. It also means reserving some tasks for the younger generation even if they are not yet ready to take on full responsibility. This allows the family business to be passed down from one generation to the next in an orderly manner.
The sixth key is to plan ahead. This means having a vision for the future and making plans to meet long-term goals. Plans should be made with God in mind so that the family business will have religious values at its foundation. These are important because faith can help overcome trials along the way, such as financial hardship or family conflict.
Father George Rutler encourages family businesses to be virtuous, competent, and capitalistic. They should take advantage of these keys for success so that the family business can survive and flourish for generations to come. Having a good character, being competent in all areas of life, and having the financial resources to sustain the family business is essential for long-term success. Planning ahead with a vision for the future is also important, as is passing on responsibility gradually over time. With these six keys in mind, any family business can achieve lasting success.