JoAnn Laing's Blog - All About Small Business

Adding the next generation to your business can be the best or worst thing to happen. 

After decades when parents were finding it difficult to entice children to take over family businesses, recent years have seen a change.  Today, more sons and daughters are asking to join and run their family enterprises.  

In recent years, many children have seen first-up close your challenges and hours dedicated to growing the business and have said, ‘No, thank you’! But with the job market fluctuating for various reasons, more of the next generation is thinking that going into the family business might be best for them. 

Pitfalls must be considered and dealt with regardless of the motivations that impelled the change.  

But is it right for the business?   

The blending of personal relationships and family history can impact future business operations. If not managed correctly, past family issues can result in misunderstandings and resentment among family members and other employees. Identifying and addressing these challenges early can help pave the way for a more seamless leadership transition.   

There are various pros and cons to bringing on the next generation. 

Pros: 

• Keeping the business in the family, preserving, protecting, and/or passing on wealth. 
• The next generation may have learned about the business over a couple of decades through overheard conversations and/or perhaps summer/holiday/part-time employment. 

Cons: 

• Employees may fear nepotism. 
• Family members not involved in the business may not be happy. 
• The next generation may expect favoritism.  

The goal should be to create a succession plan that works for the next generation and, hopefully, for future generations. Here are some factors to consider: 

Getting the help of an experienced business law attorney is essential for the longevity and stability of the family-owned business. Key elements include understanding the dynamics of family relationships, defining governance structures, and implementing strategies for a smooth leadership transition. 

Understand succession in a family-owned business often involves more than transferring ownership. It includes preparing the next generation for leadership roles (through mentorship programs, formal training, and individual development plans) and managing the next generation’s expectations.  

Family dynamics can complicate succession, so open communication is critical. Establishing clear expectations early and addressing potential conflicts can reduce friction. Documenting the succession plan allows all family members to understand their roles and promotes transparency. 

Governance structures guide decision-making and enhance accountability in your family business. Updated by-laws and/or operating agreements may help mitigate conflicts by establishing rules for governance and succession. Regular family business meetings can support better communication and can foster cooperation. Further, the company should implement a board of directors composed of family and non-family members to provide diverse perspectives. This structure can support strategic planning and enhance your business’s viability and resilience. 

Medical and emotional dynamics, as well as history and baggage, need to be navigated. Key focus areas include family relationships and the interplay between personal aspirations and business objectives. Similarly, medical issues and/or chemical dependencies should be addressed in succession plans. 

Family relationships and business roles can complicate succession planning. Relationships often influence decision-making and perceptions of fairness. Clarifying roles within the business and establishing communication protocols are essential. Regular family business meetings and a process for conflict resolution are important. Agreeing on a structured approach helps manage disagreements; consider involving neutral third parties to provide an unbiased perspective during conflicts. 

Harmonize personal and professional goals, if/when possible. Family members may have unique visions for their future, which can clash with the business’s direction. Understanding these individual goals facilitates better planning, encourages alignment, and helps set realistic goals that satisfy personal and professional requirements. 

Developing a shared vision for the business can unify perspectives. Documenting this vision provides a reference point for future decisions. This approach fosters commitment to the business while respecting individual desires. 

Generational differences can lead to misunderstandings and misaligned expectations. Communicate across generations and address challenges to create a smoother transition and strengthen familial relationships. 

Further, different generations often hold varying perspectives on leadership, risk, and business operations. The older generation may prioritize accountability, stability, and tradition, while the younger generation might focus on innovation and change. To bridge this gap, the business should encourage family members to engage in purposeful dialogues to understand each other’s values and goals. Structured meetings, surveys, or feedback forms can also help gather input from all generations, making everyone feel involved. 

Foster open communication to navigate succession planning effectively. Encourage all family members to express their thoughts and feelings; this can help identify concerns early. Establish a culture of honesty, which promotes trust and collaboration. Establish regular family meetings. Set ground rules for respectful communication that allow differing opinions to be expressed without conflict. Consider utilizing mediators or facilitators to aid in addressing sensitive topics. Technology, such as group chats or collaborative platforms, can facilitate ongoing conversations and ensure that communication remains fluid across generations. 

Develop future leaders:  

Building a pipeline of capable leaders (related individuals and other employees) within a family business is essential. Having outsiders inspires non-family member employees and family members to up their game. 

• Establish mentorship programs to facilitate skill development. Businesses ensure knowledge transfer and leadership training by pairing younger family members and high-potential non-employees with seasoned leaders. 
• Involve in business operations to allow potential successors hands-on experience. This engagement fosters familiarity with processes and cultivates a strong sense of responsibility. 
• Support formal education and external training to provide educational opportunities; this enables family members and high-potential non-family members to acquire specialized expertise. 

By proactively developing leaders, family businesses can reduce uncertainty and better prepare successors for future challenges. 

How to set up succession success: 

• Begin with early planning, communication, and preparation of the next generation, plus consider benchmarking against the best in the industry.  
• Develop a comprehensive succession plan, including identifying potential next-generation successors (employees and outsiders), creating role profiles, and establishing training and development programs.  
• The plan for learning the business should include goals and timeframes. 
• Establish metrics to measure success; these should align with other employees. 
• Set up mentoring with existing executives and/or getting the advice of an outside coach. 
• Provide regular feedback. 
• Focus on building trust, setting clear expectations, and engaging all relevant stakeholders.  

What to do when succession plans are not working: 

• It is crucial to re-evaluate the plan, consider alternative options like ESOPs or strategic buyers, and seek external guidance from professionals.  
• Explain why it is not working for the next generation and try corrective action. 
• Address any conflicts within the family, like those related to ownership, wealth, or business structures. Mediation or advisory services can also be helpful to get back on track.  
• If still not working, work out a split, including help finding their next position. 
• Inform other employees of the next generation exit. 

The business is part of your legacy.  Putting in the time, effort, and resources to do it right is essential. 

When everyone first started talking about AI for business and there were endless possibilities seen also requiring endless tools to learn. The initial forays into AI often resulted in disappointing, inconsistent, or just not worth the time invested.
Fast forward to today, and while AI has become more powerful, many business owners are still struggling with tool fatigue and information overload.

Most approaches to integrating AI into business fall short—not because the technology is not capable, but because people either spread themselves too thin across dozens of tools (plus their everyday responsibilities) or do not know how to effectively use the right ones.  An analogy of using the wrong work tool for a job is using a saw to pound a nail – the result is less than optimal: you may cut yourself; it may take a long time; may not be pounded in straight or all the way; or fail completely.

Nevertheless there are many benefits to using AI, which include but are not limited to:

• Ideation, Innovation, New Possibilities
• Summation of Results
• Broader and More Detailed Research
• Enhanced Decision-Making
• Increased Productivity and Efficiency
• Improved Customer Service
• Enhanced Accuracy and Reduced Errors
• Provide Specific Applications (improved diagnostics, personalization, etc.)

How to proceed

When selecting AI tools think about what you are trying to accomplish.  Select the best tool for the job.  Be specific with how it is used.  Then carefully and fully verify results.

At this time, pairing AI with a human is the best approach for your business to increase productivity plus save time and money.  Businesses using AI are outperforming those who do not use AI.  If your business is not using AI start using it today.

Attribution of above 3 images: Craiyon

In my many readings, I came across The Ultimate AI Tools Guide for Entrepreneurs that was put together by techunited new jersey (see below). It may help you and your business select some tools to start with and perhaps become aware of tools and functional areas you have yet to apply AI.

The Ultimate AI Tools Guide for Entrepreneurs Keeping up with AI can feel like a full-time job.   New tools pop up daily, but which ones are actually worth your time (and budget)?   We’ve sorted through the noise to bring you the best AI tools across seven key business functions — ones that are practical, easy to use, and deliver real results. Transcription & Summarization Tools Financial Forecasting Tools Market Research Tools Copywriting Tools  Social Video Editing Tools Proofreading Tools  Presentation Tools

When attending an event as a sponsor, booth participant, and/or speaker, event merchandise is an effective and often economical way to reach and engage prospects and customers. 

Whether the event is in person, entirely virtual, or hybrid, event merchandise can play a role in your growth plan.  Merchandise can serve multiple purposes for your business, including:  

• Token of appreciation for customers reinforcing that you appreciate and care about them.  
• Incentives to boost attendance, help to create a memorable event, and  
• Powerful marketing tool to promote a particular brand message and/or heighten your company’s recognition.     

Here are some strategies to effectively leverage customer event merchandise as marketing collateral to get the best return on your time and money. 

Know Your Strategy and Define Your Goals 

Understanding how to strategize your merchandise to achieve the best results is vital in creating a successful merchandising operation.  Some core strategies can be implemented to create a successful plan for introducing branded merchandise. 

Defining your goals is about understanding what you are trying to achieve with your products.  Having goals can be particularly important with event merchandise. The specific objectives desired for implementing branded merchandise can and should be aligned with the overall goals of the event.  Some common goals can include: 

• Increasing brand awareness 
• Generating income 
• Thanking attendees 
• Creating connections 
• Promoting a cause 

Benefits of Branded Merchandise 

• Increased brand recognition: well-placed branded merchandise turns into a visible, ongoing reminder for your business 
• Creating a memorable experience assists in differentiating the event in attendees’ minds and keeping it at the forefront of their minds. 
• Showcases company culture: For example, a water bottle reflecting environmental responsibility and tech merchandise can underpin a tech company’s core offerings. 

Choosing the Right Merchandise 

Poorly chosen merchandise that does not fit the event, company, or audience can have the opposite impact as well-chosen merchandise.  Selecting the wrong merchandise can significantly limit its potential impact and become a budgetary waste that does not meet your business goals. 

Take versus Tossed 

A key to ensuring items are taken home and used comes down to the type of products being offered. High-quality, useful products such as water bottles and tech gadgets are more likely to be kept and used than cheap or irrelevant swag that quickly breaks, fails airport security screening, or has limited usability, which will be tossed. 

Practicality and Functionality 

It is best to select items that attendees can readily use and incorporate into their daily lives.  Branded merchandise will be used and seen frequently, increasing the impact of potential brand awareness growth and relevance in the person’s mind. 

Relevance to the Event Theme 

Tailoring a product to a potential audience is critical to connecting with attendees and resonating with what is important to them. Moreover, aligning items to the purpose of the event and branding can reinforce an idea or message. 

Consider Your Audience 

Different merchandise will appeal to various audiences, and tailoring it to your target demographic can make a huge impact. For example, attendees at an environmental event will be more likely to appreciate eco-friendly items, whereas attendees at a technology conference may be more receptive to tech gadgets.   

Some ideas for products to appeal to different audiences could be: 

• Customers: high-end tumblers, Bluetooth speakers, power banks 
• Employees: pens, notebooks, branded shirts and caps 
• Guests: travel tumblers, snacks, plush toys 
• Students: beach towels, waterproof Bluetooth speakers 

Consider Scale and Budget 

Adjusting merchandise choices to fit the event’s size and scale is essential. If the event’s attendance is projected to be limited, scaling merchandise to accommodate this is vital. In comparison, a significant event requires a larger merchandising budget and large quantities that appeal to a broader audience. 

Offer Appealing Items 

Choose appropriate items from your branded merchandise that fit the event. It is crucial to encourage customers and others to wear or use it—and promote your business. Make your event merchandise appealing to recipients by seeking input from your customers, partners, and employees. Collect important insights straight from others. Use a survey to ask your recipients what they would like to receive for merchandise and choose the most popular recurring answers. 

While there is a vast array of options when it comes to branded event merchandise or gift ideas for events, there are some that often prove to be winners: 

• Custom totes 
• Branded t-shirts 
• Branded treats 
• Personal care products 
• Customer beverages 
• Branded caps 
• To-go cups 
• Tech gadgets 
• Umbrellas 
• Key rings 
• Enamel pins 
• Water bottles 
• Stickers 
• Socks 
• Toys 
• Blankets 
• Slippers (scuffs) 

Consider Creating Urgency and Exclusivity

These two concepts intertwine to encourage members to get their hands on merchandise as soon as possible. For example, create a merchandise line limited to event attendees who sign up or take another action by a specific date. 

If you have multiple offerings, like a hat, water bottle, or T-shirt, ask customers what they would like in advance and either send it before the event or set it aside for pick-up at the event to obtain maximum marketing benefits before, during, and after the event. Also, encourage recipients to wear or use the merchandise to gain maximum exposure. 

Create a Social Media Challenge 

Social media is a tool that can broaden the reach of your merchandise more than recipients simply wearing the items out and about. Your business likely already uses social media to engage potential and existing customers—take it a step further by including the merchandise in a social media marketing campaign. Here are a few ideas you can try: 

• Themed challenge. Create a challenge for interested parties to win a prize. For example, you might challenge recipients to wear their new merchandise while out and about. Ask members to tag you in their posts to be considered for a prize, which could be an additional merchandise item. 
• Use current trends. Put your own twist on a current social media trend. For instance, ask recipients to participate in the #ThrowbackThursday trend, where they post pictures from past events and a photo of themselves wearing current event merchandise. 
• Work with influencers.  If there are influencers related to your business’s work or industry, consider sending them merchandise for free and asking them to share a post while wearing it to promote your business and the upcoming event you are participating in. 
• Use a hashtag.  Create a memorable, snappy hashtag that’s specific to the event. This will make it easier for people to find similar posts and important information about the event and for you to see which recipients are using the merchandise to market your business and the event. 

No matter which social media challenge you implement, offering a reward to incentivize participation is a good idea. For example, you could offer a gift card to a local restaurant or store to the person who gets the most likes, comments, or shares. 

Leverage Partnerships to Co-Brand Merchandise 

Utilizing your partners or event sponsors is another way to market your business’s event participation. Partnerships with well-known, reputable local businesses or companies can encourage your recipients to wear the business’s merchandise out and about. 

In the case of an industry conference, you could work with a local group or industry supplier to sponsor your business by providing co-branded merchandise for participants. They would gain brand recognition, and your customers and potential customers would receive high-quality, relevant merchandise featuring your brand identities. 

Final Thoughts 

Events can be crucial to your company’s growth. Merchandise can play an important role in helping customers and potential customers feel appreciated and connected to your business. It can also serve as a way to raise the business’s profile and create an event that attendees are sure to remember. 

In today’s fast-paced, chaotic business environment, it’s easy to lose your footing. Companies that embrace purpose as their guiding North Star are navigating the chaos and thriving in it – outperforming competitors, inspiring employees, and building lasting connections with customers.

What is Purpose?

Purpose is the guiding “why” that aligns your team, clarifies decision-making, and propels your business forward. A well-defined purpose creates resilience, focus, and growth without sacrificing efficiency or profitability. For businesses striving to navigate complexity, purpose is not just a nicety; it’s a necessity.

The Power of Business Purpose

According to a Harvard Business Review study, purpose-driven businesses grow three times faster than their competitors. They also experience 46% higher market share growth and see measurable gains in employee engagement, customer loyalty, and innovation. This is because purpose cuts through the noise and chaos; it gives business owners, managers, and teams clarity about what matters most.

Some Benefits of Purpose   

1. Employee Engagement and Retention – Purpose attracts, aligns, and retains talent with your business. When 70% of employees define their personal value through work, purpose-driven businesses should tap into this intrinsic motivation. Further, engaged employees are more productive and likely to advocate for your business, which is crucial for successful growth and organizational change.

2. Customer Loyalty and Market Position – Purpose can be a great differentiator in crowded markets as customers decide why they should choose your brand. Customers increasingly demand that companies act with integrity and make a positive impact. A purpose that resonates with customers and employees drives purchase, loyalty, repeat business, and perhaps premium pricing and referrals, which drive growth and profitability.

3. Resilience and Long-Term Growth – Purpose provides a compass and stabilizing force during challenging periods of disruption and change. It helps owners and managers prioritize, make tough decisions, better align teams and resources, and enable leaders to focus on profitable, strategic growth. According to multiple long-term studies, companies with a clear purpose outperform competitors by 40%.

Please share other benefits you have incurred by having a purpose driving your business.

Challenges of Purpose

1. Defining purpose is not easy. It must be real, not performative. A founder’s vision often drives purpose – simple, singular, and straightforward. Think about why – the cause or belief that drives your business.

2. Purpose must evolve as the business grows; purpose becomes more complex and must be integrated into strategy, culture, and operations, ensuring it informs everything from hiring and product/offering development to customer service and decision-making. To clarify a multifaceted purpose, consider these dimensions: the overarching reason the business exists, how the business solves problems or provides solutions for customers, and the key principles that guide decisions and behaviors. A multifaceted approach ensures that purpose is both unifying and adaptable, aligning your business across its growing complexity

Stakeholder Expectations

Business owners and managers often must balance diverse expectations from customers, employees, suppliers/vendors, investors, and other stakeholders. Purpose can be a standard, unifying thread that aligns stakeholders without compromising your business’ focus.

Summary, the purpose is your most significant competitive advantage. It grounds your business, aligns your team, and focuses your growth. Business owners and managers who embrace purpose find it easier to navigate the complexities of scaling, turning chaos into clarity and confusion into focus.

To succeed, define your purpose, commit to it, and watch your business thrive.