Leading the charge in revolutionizing public queuing solutions as CEO of Qtrac and President of Lavi Industries.
Entrepreneurs bring many ambitions to the table, including, perhaps, someday bringing their children into the enterprise. A successful business can thrive and grow for generations, so it’s natural to want your family to continue the legacy and cultivate the business’s future.
Although developing a family business sounds straightforward and beneficial, transitioning and expanding the business from generation to generation has many risks, challenges and complexities to consider.
In any business, if the future is well planned, risks are managed, and challenges are faced head-on, then the sky’s the limit. In the case of a family business, the potential to succeed is even greater because shared values, common goals, mutual respect and a winning culture can transcend generations.
Here are some important considerations for second-generation family businesses pursuing growth.
Maintaining The Legacy
Our family business, Lavi Industries, has been an established leader of manufactured and digital public queuing solutions for more than 45 years. From a young age, I was exposed to the people, innovations and leadership of Lavi Industries, which sparked a curiosity within me. Having pursued careers in marketing, real estate and other technology ventures, I realized my destiny was to join Lavi Industries and build toward the future.
The right mixture of skills, timing and fit must be present when bringing new talent into any business. This is no exception when considering family members and certainly the next generation. When I decided to join Lavi Industries, I knew that I needed to pay my dues through hard work, a “beginner’s mentality,” humility and proven success in order to integrate myself into a company that was already established and successful. In my case, the responsibility was on me to bring value to the team—not only to my parents, but to all of the dedicated Lavi Industries employees who helped build the business.
With that said, the first-generation “founders” understand that as the world evolves, businesses must innovate and change. The fundamental value of integrating the next generation into the business (given the timing, skills and fit criteria are met) is to facilitate the growth of the business through a careful balance of “continuing the things we do well” and transforming where necessary. This requires vision of success for the second generation, which entails careful onboarding, open-minded collaboration and, of course, succession planning.
Dreaming Big
The second generation coming into the family business has an absolute responsibility to “dream big.” Businesses are either growing or dying—maintaining the status quo should be considered a failure.
After years of climbing the ranks at Lavi Industries, I was able to mobilize big ideas pertaining to products, go-to-market, management structures and long-term growth strategies. One such example was the development of Qtrac, our cloud-based queue management software venture, and the eventual spinout to Qtrac LLC, a rapidly growing tech company. These strategies were developed in collaboration with my parents but also with Lavi/Qtrac’s legacy and new talent. Although the companies continue to transform, they have both maintained the incredible culture and values that were there from day one.
A multigenerational family business needs to find the perfect balance of big dreams and pragmatic management to ensure the business grows and evolves in a profitable and risk-controlled manner. Second-generation enthusiasm and energy coupled with the first generation’s wisdom and experience are a potent combination to find this balance.
A Generational Partnership
The foundation of any good partnership—business or otherwise—starts with mutual respect, shared values and common goals. Generational business partnerships are no exception. Here are key principles the incoming generation and the first generation should strive for to grow and future-proof a second-generation family business:
The Incoming Generation Must-Dos
• Have big, audacious goals.
• Maintain a relentless work ethic.
• Respect the success and wisdom of the people who built the business, including employees.
• Align vision and values with founders and colleagues.
• Grow and transform the business platform in a thoughtful and pragmatic manner—don’t break the platform.
• Always know when to separate family and business. Difficult discussions are essential, so keep it professional.
The First Generation Must-Dos
• Have a clear vision for the future.
• Carefully onboard and develop the next era of talent, including the second-generation family member.
• Be patient with the second generation; create space for them to make decisions and grow.
• Don’t coddle the second generation—make them work for their own success.
• Have a succession plan.
• Share your wisdom and experience generously—it is a vital resource.
• Always know when to separate family and business. Difficult discussions are essential, so keep it professional.
If both generations adhere to these principles, the potential for growth, transformation and profitability is remarkable. Equally important (if not more so) is that the process of building a generational business becomes meaningful, exciting and fulfilling. This business becomes a foundation that perhaps even a future third generation can continue to build on.
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