How to transform Family business into Corporate Entity

Though the subject is pretty vague its important for new educated generations joining businesses established by earlier generations in family. Often business is used by families to generate employment for all individuals wishing to work. This lead to delegation of task to individuals which may not be their specialization but created due to their pressence in business.

Lot of new generations when join the business for them the role is to takeover the inherited career path of their father keeping intact the business process and machinery in place. Though this is changing in big business houses. Small and Medium enterprises are still following the traditional approach. Any business is again dependent on three pillar of engagement

– Vendors or Suppliers

– Customers

– Employees

Most of the new entrants are taught how to deal with the 3 to keep established business process moving. Some are better entreprenuer than previous generations hence may optimize the process to function better. Or some may even start additional processes to support the existing processes.

The idea is if their exist an established business process with 3 level of engagements. Why cant we bring in proffesional business managers to run the process. whereas freeing the holding or business owner to take a step back and review overall business functioning in an investment proposition way. Just like people give advice to any startup please keep an admin guy the reason is if you are busy paying bills and running after payment collection than your actual skills are going to waste.

So if we take example of Anil Ambani how successfully he has turned around a family business into a corporate entity. By creating a board of skilled business managers he has created a frontline whereas his skills are easily divided for the utermost group and strategic requirements. The business managers keep the existing strategy created in execution and provide feedback back to him for improvement of strategy based on ground reality

Hence argument for new entrants is to map the business process if you can keep it running than so can a business manager. This way you will find time to become a better entreprenuer by purusing other business interest helping in investment and great wealth creation dream.

More Information for starting up in india : Startup India


2 Responses to “How to transform Family business into Corporate Entity”

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