Getting into Inherited business

NS shared a passion for interior design while his family wanted him join the family business of trading in commercial glass panels. After graduating with an MBA in Family Business Management, he was able to retain his original clientele as well as explore new business ground by supplying glass paintings, tainted glass artwork, fresco and interior concepts in glass to corporate offices, hotel and airport lounges as well as luxury villas in India and abroad. The course allowed him to think how he can apply his family business strengths to enhance the product and deliver it to a new range of clientele. Now he is able to give a new identity to the family trade as well as derive personal satisfaction by consulting on interior design.

Family business operated by a partnership of brothers often witnesses a breakdown once ego clashes or contrasting business interests set in and corporate India is witness to many such fiascos. While distributing a large business empire may be easy (not always), splitting small enterprises and work units among brothers can lead to several complex issues. Family Business Management courses model young entrepreneurs to be receptive to suggestions from partners, work out a feasible separation plan, and allocate duties equally among partners so as to invite displeasure and even at times power of attorney and conduct a responsible business proposition.

Expanding horizons:

True to the essence of what they are taught, many family business graduates today are not only successfully managing their business duties, they are also establishing themselves as effective entrepreneurs by improving processes, motivating workforces, rationalizing costs and charting new territories in search of new business opportunities. HQ, who pursued a family business management program and took charge of her father’s chain of motels in the USA, is a case in point. Her aim was to integrate the chain of motels via common computerized booking. In her endeavor; she was not only able to rebrand them; she ended up giving each one of them their uniform identity. After consolidating the motels, she was able to promote her chain of motels to fetch franchisee and saw the family business grow from 10 to 40 motels in the USA.

TT also anchors similar hope and wishes to mechanize a lot of processes in his factory that will not only help in rationalizing costs but will also help them deliver at a quicker pace.

Many Indian Institutes are offering MBA in Family Business Management or Post graduate programs in Family Business and Entrepreneurship to address the demands of developing strong future leaders who can carry forward their family business brands and turn them into global models of economic excellence.

Generally to get entry into such programs, students have to disclose their family business history, submit a paper stating how they would like to carry the family trade better and also face a round of personal interview with a panel consisting of academicians and businessmen. Other general admission criteria include a recognized degree, good communication skills, actual involvement in running of the family business and total commitment to self improvement.

Business leaders of tomorrow shall not emerge by virtue of inheritance of family legacy but by virtue of their competence. Thereby, it is necessary to train them into learning the professional aspects of business management and incorporating the right use of technology and manpower to take their family business into a new direction.

It is also possible to enlarge a family business from small and medium to a large corporate sector by individual professional competence. Bajaj Group and RIL are some of the examples.