One of the perks of owning a business is an opportunity to pass your business and wealth down to your family. Multigenerational businesses are a great way to do some long-term family planning. Our today’s guest is Mike Boyd, the host of The Business of Family. He interviews successful families and their advisors to learn how they steward their generational wealth and manage succession issues to “keep it in the family.”
Tune in to hear how you can create a family enterprise that can last your family for generations to come.
Mike Boyd is a serial entrepreneur with an impressive business portfolio. He specializes in helping entrepreneurs grow their family businesses into family enterprises that can stand the test of time. Unfortunately, most companies don’t last longer than three generations. Mike is on a mission to help educate entrepreneurs on this topic through his podcast, The Business of Family.
Creating generational wealth through a family business
Creating generational wealth through a family business is a strategic way for establishing a financial legacy for future generations. It involves creating and expanding a business that will survive the test of time while also providing financial stability.
One of the benefits of a family business is connecting the family members’ interests and values with the business’s objectives. This alignment produces a strong sense of ownership, dedication, and shared purpose, all of which can contribute to long-term success. Families can provide long-term wealth accumulation by fostering a strong work ethic, entrepreneurial spirit, and business acumen in successive generations.
To maintain the family legacy and ensure the successful transfer of the business, effective succession planning is a must. This entails finding and training qualified successors from within the family. Preparing them to assume leadership roles and operate the business with the same level of passion and experience. Families can enable a smooth transfer of knowledge, skills, and ownership through mentoring, education, and planned transition processes, ensuring the continuity of the business and its ability to create generational wealth.
However, it’s important to note that establishing generational wealth through a family business involves meticulous planning, strategic decision-making, and a long-term perspective. It is essential to establish clear governance structures, effective communication channels, and processes for dispute resolution and family dynamics management. Seeking outside expertise, such as financial experts, legal specialists, and business consultants, can also provide essential insight and assure the viability and expansion of the family business.
On Today’s Episode:
- Who is Mike Boyd? – 0:36
- Where Mike sees himself in his entrepreneurial journey. – 4:02
- Mike’s calmer approach to business and portfolio entrepreneurship. – 4:55
- What had to change for Mike with his business portfolio. – 6:50
- One of the biggest mistakes in his career and the lesson he had to learn from it. – 9:07
- The biggest impact on Mike’s experience as an entrepreneur. -11:28
- Using digital intangibles in business to keep costs low. – 14:48
- The benefits of automating operations. -16:57
- Risk types in business. – 18:54
- The importance of having a long-term view on business and life. -21:41
- Having a family constitution, family meetings, and a family value system. -23:30
- How most family wealth is gone by the third generation. -24:14
- Generational storytelling and passing down wisdom is a powerful force. -28:09
- The difference between a family business and a family enterprise. -35:41
- How Mike plans to continue educating entrepreneurs on managing generational wealth while keeping families together. -38:51
- The importance of staying in the game when it comes to business. -40:46
- The impact of bringing meaning and purpose to your business. -42:58
Key Takeaways:
- Generational storytelling and passing down business wisdom can significantly impact the strength of your family and their success going forward.
- If you inherit a family business, think of yourself as a steward to grow it and leave it even better than before and provide a way for future generations to thrive.
- Focusing on the profit motive and staying in the game can bring a tremendous amount of success and help you weather the storms that life brings.
- Diversifying your family wealth can give it even more staying power for multiple generations.
- Giving your business purpose and meaning beyond yourself can light you up when you feel lost.
You can create family enterprises that last for multiple generations.
[37:45] “We’re not trying to diminish the wealth, we are trying to grow it. As a result, we are stewarding whatever we inherited and passing it down to the next generation in a better condition than when we inherited it.”
How can you create a family business that will continue to thrive through each generation? Tell us in the comments, and don’t forget to say hello if you would like to share your entrepreneurship story on our podcast.
Connect with Mike Boyd:
- Web: https://mikeboyd.com.au/
- Podcast: https://www.businessoffamily.net
- Linkedin: https://www.linkedin.com/in/mikeboyd08/
- Twitter: @MikeBoyd
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