12 core skills to be mastered by college kids who wish to join their family business
Recently I have interacted with a few kids who have a very high interest in joining their family business, but have no clue as to how their education journey will allow them a smooth transition into their business, difference of opinions among them and their parents are the most unaddressed issues, if anything they try to seek a degree/major based solution (technical solution) at their best fit university, to which I tell them that a degree in business or entrepreneurship will not give you enough skills to efficiently grab a full time responsibility at your family organisation and side by side get complete blessings of your elders as well, yet alone be competent enough to present a smart succession plan to them.
Before I jump into the 12 core skill that such kids should master before graduating, if their primary aim is to take control of their family business, allow me to shed some light on family science in this matter, remember that it is your family members who will ultimately decide if your succession will work or not, that majority of parents and students are not aware of the fact that there are subjects out there such as family communication, family expectations, family values, family competencies, family dynamics etc. these need to be looked into as seriously as thinking about operations of your business or how to increase sales in the upcoming fiscal year. A study estimated that majority of family business owners would like to see their business transferred to the next generation, it is estimated that 70% will not survive into the 2nd generation due to lack of adequate knowledge and skills and that 90% will not make it to the 3rd generation. Most of the succession are driven around technical know-how transfer and that the “individual thought process” component is not given much importance. It would be smart to take such classes while at college.
12 core skills that you will need:
- Smart Recruitment: Your capability to recruit smartly (will you use the most effective tools, psychological testing, rigorous screening etc), hire (will you be proficient in Human Resources overall), and discipline employees, knowledge of compensation issues (rates of pay, employee benefits, training etc.)
- Managing people: You need to be proficient in providing clear directions as a leader, delegate tasks, maintain decorum and discipline, motivate you team to do better, up their standards, obtain productivity from staff in less amount of time.
- Communication Skills: Are you a good orator? Can you speak to every category of person in your organisation when needed. Do you have the ability to provide clear, concise, and relevant information in a timely manner, do you have the patience to listen to what they are saying?
- Planning: (long-term or big-picture outlook) ability to analyze market information (market intelligence) and develop corresponding corporate strategies (i.e., strategic business planning) to achieve continued growth and profitability.
- Team Efficiency: can you work as a team player irrespective of your title or position. Can you bring on board people you may not be team players, but you need them very much to be on it anyhow?
- Sales: Can you assess or identify/understand customer needs, focus on customer service, can you really selling process, paying attention to before- and after-sales follow-up. ability to close the sale, convey a sense of pleasure/enjoyment in the selling process.
- Manage your time: effective use of time, ability to prioritise, not kill your time cause you made a wrong decision?
- Negotiate: Are you a skilled negotiator, do you have the capability to digest your ego and take your family business forward? Do you have the ability to see the whole picture?
- Finance: understanding of your business accounts and how to manage its finances including financial statement analysis, can you foresee financial crunch and get prepare your own accounts or will your auditor do it for you?
- Networking: Will you be able to find friends among your social circle or will that leisure time be primarily for your relaxation purpose only?
- Marketing: Will your advertising expenditure will be a pure expense or an investment? Can you smartly manage advertising and promotion activities?
- Analytical: Critical thinking, decision making will be most importance no matter the department you touch, can you analyse information and provide a clear picture of what the information is trying to indicate. Can your make projections and stand out from your competitor cause you have the brains to outsmart them?
You must be wondering – I will learn most of these from my degree program. Some you will for sure, but for some you need to seek by getting a different type of exposure, for example – networking you will get most from joining on and off campus clubs of your interest, if you are weak in communications then you might need to look up Dale Carnegie grooming programs and similar such professional courses. There are negotiation and persuasion program that MIT offers and the most tough job of all – keeping yourself physically healthy with regards to your diet and exercise, which will directly support your brain to be smarter day by day.
If you are one of those kids who aims to accept your family business in the future and are confused about your customised education plan then you may get in touch with me by sending me an email at the below mentioned email address.
Satyam Khanna
Independent Education Consultant
Email: info@khannaed.com
