Traditional family YMES / PYMEs and their life cycle: it tries to explain the crises that are affected by the EF. This model tries to show that SMEs fail if they do not see that the key to their future success is how family gets involved in the company, that is, how they prepare to overcome their own crises that will touch them overcome by the mere fact of Be a SME
First stage: The one of the founder, undertakes the business
It is the initial stage of the life of the company, in which the entrepreneur initiates – man or woman – places an emphasis on taking advantage of a business opportunity that perceives and is excited to carry it forward. The founder is an entrepreneur, assertive, passionate and has great ability to overcome difficulties. You could say that the founder “sees the opportunity where others watching do not see it.” Your business plan could be written on a paper napkin you write to tell a friend or relative about the business model you want to develop.
Here the founder plays a fundamental role since he is the one who performs several functions and does not usually have who to share the decisions because there is a lot of intuitive behind them.
First crisis: due to lack of delegation
The successes of the founder have allowed businesses to grow to a point where they can no longer do everything as before because they are having productivity problems, both commercial and even financial, because they do not eventually charge their customers. To overcome this crisis, people must be added to whom to delegate some functions that before him. If this is achieved, it will be possible to overcome this first crisis that is the one of growth for initial success.
Second stage: Growth for the new leadership style of the founder
The founder must develop competencies to lead the new team under his command. Communication remains quite informal but more complex in the new functional structure.
The sense of mission communicates to its people with such passion that it develops in them a strong sense of belonging that manifests itself by the great commitment that they assume for the objectives of the company. In this way, the founder achieves a formidable competitive advantage that is only thought for the SME.
Second crisis: for the income of the children
The founder is already undergoing the 50’s and his children have started working with him. Although this stage causes the family a lot of enthusiasm, it does not stop presenting certain difficulties:
The overlap of roles played by the same person in the family and in the company.
The founder prioritizes the trust and commitment of the children above what they can be prepared.
The vision and the direction styles of the father and the children do not usually coincide. The desire of the children to introduce what is learned in the university, is seen by the founder as a threat to his company.
Parents and children do not usually work as a team, they do not know how to communicate effectively, so the founder must know how to communicate their vision, their business model and instill passion for the company and feed their dreams and learn to listen to understand the interests and expectations Of your children. But, above all, the founder will have to consensus with his children tasks and responsibilities, achieve commitment on the part of them.
Third stage: Growth for the entrepreneurial contribution of the children
If the founder succeeds in overcoming the previous crisis then the company may continue to grow by virtue of the synergy that the children have achieved with their parents to undertake better management of the company and undertake new business. Founder, children and employees, putting their best to get the company forward has a force that is especially vulnerable to situations of crisis.
Third crisis: death of the founder and crisis of power among the brothers
At the emotional level, the death of the founder and father – or mother – is a difficult moment to overcome, especially when death occurs unexpectedly.
The succession is often an uncomfortable and difficult subject to treat for the children, but it must be done in the life of the founder, since it could be too complex to leave it released to the next generation. The potential conflicts over interests, vision, expectations, and dealing with taboo subjects (ie those that are not usually spoken by fear of the other being taken ill) should be anticipated, such as the bad performance of a brother Or the son of a brother.
Fourth stage: Professional corporate governance
From the stage of the founder to their children, it involves moving from a concentrated power in one person to another where the children must learn to consensus power to make decisions that benefit the company above their personal interests. This means incorporating good practices for the corporate governance of SMEs to allow them to overcome the crisis