The desire of every successful business owner is to extend the life of their business beyond the first generation. Although this desire is a common desire. It fails 90 per cent of the time. According to global research, only 10 per cent of family businesses will celebrate their 100th year anniversary. This massive death of businesses is due to the loss of certain critical assets you will discover before the end of this article. But before I show you these assets, let me first show you how these assets are formed.
The process of building a successful business from scratch does something to the founders of businesses that transforms them from ordinary men to extraordinary men. These extraordinary men develop certain abilities on their journey to wealth. That makes them reservoirs of critical assets that must be transferred to the next generation. The loss of these assets is the reason why successive generations fail. When the founders of businesses die without transferring these assets a death sentence is cast on the business.
Businesses that stand the test of time reproduce these seven assets in the next generation. It is the timely transfer and development of these assets. That transforms successive generation from consumers of wealth to producers of wealth.
So, what then are these seven assets?
The seven assets are as follows. First is a wealthy mindset. Second, is unshakable values. The third is a good reputation. Fourth is a personal philosophy. The fifth is a personal longevity health habit. Sixth is wealthy relationships and the seventh is a profitable business asset. To understand how each of these assets affects business longevity, let’s look at them in more detail.
First, a wealthy mindset. Founders of businesses have a certain way of thinking that is uncommon among ordinary men. This unique way of thinking is what supports the creation and preservation of wealth. Some of the critical elements of a business owner’s wealthy mindsets include-an undying belief in possibilities and confidence in their abilities, a never quenching hunger to solve problems, a selfless act of service and so on. While ordinary men see impossibilities, barriers, and limitations, successful business men turn impossibilities to possibilities. For successive generation to preserve the family business, they must develop a wealthy mindset.
Next is a set of values. Successful business owners commit to a certain set of values that guides their business decision and their interactions with other men. These values are self-imposed and direct how they do business. Although these values are sometimes challenged by the business environment, they are prepared to defend it and pay the price. They pay the price because they know that paying the price is easier than violating their own values. A good example of value that is common to successful business owners is integrity. Integrity is not perfection, but the ability to integrate one’s words, deeds and actions. Extraordinary business men stand for something and successive generations must develop their own values.
Next is reputation. Reputation is the public perception consumers have about a business and the respect they have for the business leader. A good reputation is built over years of sacrifice, sweat and tears and must be guarded with care. To ensure the long-term profitability of a business, successive generations must know how to lift a good reputation and what not to do to a good reputation. Reputation is the consumer’s own reality and it must be guarded with care.
Next is a personal philosophy. A personal philosophy is a series of conclusions a person makes from their own life experience and their understanding of the world. Business owners have a well of experience they can draw conclusions from to benefit the next generation. These conclusions can serve as guiding philosophies for the next generation. Examples of great philosophies that will benefit the next generation include: A difficult decision-making philosophy; a crises management philosophy; a business partnership philosophy; a family unity philosophy, a lasting marriage philosophy and so on. Leaving the next generation with a pocket of philosophies will cut-down the repetition of wealth dissipating mistakes.
Next is a personal longevity health habit. The greatest asset in life is health. Losing a family or critical business member to preventable sicknesses and disease due to unhealthy lifestyle choices is the greatest tragedy in life. It is unhealthy for a family and unprofitable for a business. Although life is limited in years. Its length can be negotiable. Life can be extended through deliberate good health habits. Business leaders must thus create a culture that promotes the longevity of life. This is the only way to preserve the human capital that drives a business.
Next is a wealthy relationship. To get to a certain level in business. Business leaders sought the help of other people. This means that every successful business leader has valuable networks that is beneficial for the next generation. But these relationships will not just pass on to the next generation. They have to be deliberately cultivated and nurtured. Successive generation must know how initiate new relationships nurture existing ones and extract value from them without the continuous nurturing of valuable relationships. It is hard for the next generation to lift the business beyond the laurels of its founders.
And last but not least is a profitable business asset. Not all businesses are assets. Certain businesses if critically analysed by an independent investor are liabilities. Dumping a liability on the next generation is cruel. To pass on businesses that will last, business owner must analyse their businesses through the eyes of an investor and they must also see successors as investors who can accept or reject a business.
Building a business that will last for many generations is not an easy feat. While it takes one extraordinary business man to build a successful business, it takes the collaboration of many extraordinary business men across multiple generations to keep a business breathing.
Grace Agada is the First indigenous Family Business Longevity and Legacy Expert. With unique expertise in helping Self Made Business Men Transition from Vanishing Mortals. To Men with Indestructible Name, Wealth and Legacy. Grace’s philosophy is simple. Successful Business Men do a lot of good in the world.
This good should Expand. Receive great recognition and extend beyond their lifetime. Her goal is to help Family business Men Eliminate factors that disrupt and murder Businesses. Discover, Own and Dominate New Emerging Market Opportunities. And reinvent their Businesses to last for up to 100 years. To learn more about how Grace can help you send an email to email@example.com.