“Never let short-term profit interfere with your long-term objectives,” he continues. “The quality of, and need for the product will let the logo and label carry the message to the market for you.”
With legal, financial, and tax issues all needing to be dealt with at the time of succession, making sure the company has a strong reputation and robust systems in place can relieve a great deal of unnecessary pressure. In many cases, an outsider or consultant can lend a hand to ensure the transition goes smoothly.
When interviewing consultants or advisors, make sure they have a history of working with multigenerational companies, as one size most definitely does not fit all. “This is where the outside legal and accounting professionals should come in,” explains Vaux, “but each business is different. Outsiders may be detached from the business, but they understand it, and can act independently and equitably.”
Ensuring Your Legacy
While family companies may have similar structures, product mixes, or approaches to business, there are always crucial differences.
Nevertheless, some of the same words kept cropping up in conversations with people who work in or consult with multigenerational businesses. Values, culture, integrity, and dedication—these qualities of any successful enterprise are of particular note in a legacy company.
Continuing to innovate while respecting tradition in a way that reminds employees of the company culture every day, is what separates the good from the extraordinary.
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