How Can Family Businesses Achieve Sustainable Development?

　　 Among the top 500 in the world, more than 40% of the enterprises are family firm 。 In Germany, family businesses created nearly half of the German economy in the first few years of the twenty-first Century. Since family businesses have such a great charm, why do Chinese family businesses have an average life expectancy of only 2.7 years? How can China's family businesses achieve sustainable development?

　　 There are a large number of family businesses in China. How to realize the sustainable development of family businesses is these enterprises. Managers A matter of great concern. The founders of enterprises should break through the limitations of their own and family members' qualities, establish the management structure of modern enterprises, realize the shareholding of family businesses, and be able to train and train successors for a long time. This is the only way for family businesses to achieve sustainable development.

family firm Shareholding

The core of family business is the ownership of assets and the right of management and control. Family businesses have a natural advantage at the beginning of their founding, that is, the blood relationship between them makes them trust each other very much, and the cost of communication is very low. In addition, at the beginning of the establishment of family businesses, the employees were mostly family members, and the proceeds from entrepreneurship were also distributed within the family. Therefore, family members often did not care about overtime and even basic wages, and the operating cost was naturally low.

However, as time goes on, when family businesses become more and more powerful, not everyone in the enterprise is related to the founders. At this point, the boss will face the management conflict between family members and non family members in the enterprise: family members may not care about the basic salary and commission, but the non family members will have some requirements, sometimes even have a certain proportion of shares. At this time, the way of blood management is no longer suitable for the family business. The helmsman of the enterprise will face a choice: whether to go back or to go out bravely?

Faced with this choice, there are two situations: first, the family members are not good enough, but the founders only rely on family members and refuse to adopt the professional manager system, so the enterprises will never do much; second, the family members are excellent enough, even if they do not hand over the operation control to non family members, the enterprises will have bright prospects for development. Like Liu Yonghang's five brothers, each of them is very cattle. When their business reaches tens of billions of dollars, the family stock is still nearly 100%. Therefore, the prerequisite for refusing to adopt the professional manager system is that the boss and his family members are excellent enough. If not, if you want to be bigger, you must introduce the professional manager system. In the process of introducing professional managers, we must sacrifice money to achieve sustainable development. By dividing the money, the unrelated non family members will be forced into a blood relationship, that is, "economic kinship", so as to realize the continuation of family businesses.

Shareholding is a kind of "economic blood relationship". Family businesses transform shareholding enterprises into 1~2 shareholders by shareholding. Such an enterprise is also a family business, because there is a blood relationship among shareholders, but this relationship has changed from pure blood relationship to today's "economic kinship".

If family businesses want to achieve sustainable development, we must establish a mechanism of shareholders' advance and retreat after shareholding. With this mechanism, once the ability of the family members of the enterprise is not competent for the fierce market competition and hinders the development of the enterprise, we can take advantage of the shareholders' advance and retreat mechanism to introduce new talents, and eliminate the "inferior" members, even the family members and the founders themselves.

There are many ways for shareholders to withdraw. The way of withdrawal is quite reasonable. Shareholders can sell part or all of their shares when they leave the company and leave certain positions of the company. For example, when several people started a joint venture, a shareholder invested 10 thousand yuan, accounting for 10% of the total assets. Now the capital of the enterprise is 100 million yuan, so when he withdraws, he should give him 10 million yuan in proportion to the total value of the assets and the total value of the assets he owns. After he got the money, he left the share he had originally sold to others. Of course, if someone is willing to withdraw from the premium, it will also show that the enterprise has a bright future. In short, it is based on the actual value, market value or premium of the company.

There is one thing to note in the withdrawal mechanism of shareholders, that is, the sooner the exit, the better. Chinese entrepreneurs should reverse the idea that enterprises are not their children, but their products. Chinese entrepreneurs tend to love their own businesses too much, and they are not willing to leave it. If they quit, they will miss the right time to quit.

　　 Realizing the upgrading of family businesses

Chinese family businesses often find it impossible to replace others when they want to upgrade. The best way to solve this problem is to find successors from within the family. But the helmsman often has his natural qualities and the life experience that he absolutely can not copy. It has a certain "natural" nature and is often encountered but not available.

What can we do to find a successor? The helm of an enterprise can play three roles: one is to be a shareholder. Give the business to CEO, the chief operating officer. The two is to cultivate entrepreneurs. If we can not find an excellent managerial talent from within the family members, we should cultivate a management talent and turn him into a useful entrepreneur. The key ability of an entrepreneur lies in "employing people". As long as he has the ability to know and use people, there will be many people to help him in the business. The three is to cultivate capitalists. If entrepreneurs can not be cultivated, then they can cultivate their capitalists and be able to see wealth and investment so as to ensure the continuation of their family wealth. So, in the political and social stability situation, within a few generations, there will always be an excellent talent in the family, which is called "over three generations". The so-called "rich three generation" is because China generally mixed entrepreneurs and families for a talk, a hundred years of business is not much, but a hundred years family is entirely possible, this is actually a continuation of the way.

　　 To sum up, China's current family business helmsman wants to "get richer than three generations". We must inherit the fine tradition of family business management, introduce the advanced management system necessary for modern enterprise development, realize shareholding and actively train successors, and make enterprises bigger and stronger.