Explore new opportunities to start creating your own legacy while sustaining your family legacy
I must first apologize for the delay in getting Part II posted. I just finished up my MBA and had a great deal of final coursework to deliver. If you recall from the previous post I broke individuality into two parts. The first of which was to Be Yourself, acknowledging that you may be similar to your parents but you are unique in your own way. The second part is Blaze a New Path. Before we dive in I must qualify these two posts with this statement, I am in no way suggesting that you should ignore your past, or your connection to your family. I personally believe that our history, especially our family history, plays a major role in defining who we are as individuals.
The first component of Blazing a New Path, as I see it, is the idea of a Family Business vs. a Family Enterprise. In addition to the business aspect there is the concept of wealth as an opportunity. The two principles align more or less at their core function. Starting with the family business, many families become attached to the physical business or industry in which their predecessors have worked hard to cultivate. There is certainly nothing wrong with remaining loyal to your family’s original business, but there are other opportunities that exist for you to explore, something that you could put your mark on as an entrepreneur or an innovator. To be a family enterprise is to view the family ownership group as an enterprise that invests and operates in several different businesses or industries. For example, if a family owns a real estate business founded by their father, as the business passes to the next generation perhaps they start a series of businesses that compliment their real estate business. Pretty soon the family ownership group expands into another generation, along with success in those aligning industries. Soon after you could have an enterprise that involves real estate development, management, leasing, general contractors, building material supply company, etc. I think you can start to get the picture. In the spirit of diversifying your portfolio you could explore totally different industries, so that in the event of another recession like 2008 a major real estate bubble wouldn’t cripple your entire enterprise.
When thinking about wealth as an opportunity I think of money in this context as a vehicle to invest in many different industries. Many of the families we encounter struggle with the concept of selling their business; they like being a family business and are worried that if they sell out they will lose that part of their individual and family identity. On the contrary, I would say you’ve just closed one book only to start writing a new one. The world is your oyster so to speak; all of the hard work to become an integrated and professional family ownership group can be applied to new forms of investment. The wealth that you’ve generated through the sale of a business or through inheritance can be used as a liquid asset for investment; this is an exciting time period for you because the canvas is totally blank.
These two alternate pathways is why I encourage young people we work with to cultivate personal interests. Personally I wish I read more books, I admire historical figures when they’re described as being vivacious readers such a Theodore Roosevelt. By reading you are learning something and opening your mind up to exploration. The personal interests you cultivate will serve as the foundation for your future enterprise. I have a personal interest in clean water projects, water sustainability, and education. I am saddened whenever I read about places where clean water is so scarce people will literally walk miles to collect some to bring back to their families. Or that in some places 80% of diseases that are treated are due to water born illnesses. I am also terrified with the over consumption of water, and the fact that our most sacred resource on the planet is not oil but water. Finally, I have been given the gift of education and I desire in life to pay that forward. So if I suddenly found myself very wealthy, or my business had a surplus of capital, I’d probably invest in one of those areas that are special to me. You will cultivate your own interests if you already haven’t, and in so doing you are opening your family enterprise up to a whole new world of opportunities.
The final point of discussion centers on the question that probably is starting to creep into your mind. How do we make this all happen? I don’t have all of the answers, and quite frankly there is no ONE right answer. Your family has a specific set of circumstances that will dictate some of the paths you would take. The first place I’d start if I were in your shoes is with a conversation. I know it sounds cheesy, and in some ways even a conversation might seem impossible. But the best way to launch into a new enterprise is to start talking about it. If you recall I also had a post a few weeks ago about how to pitch new ideas. If you’re a lot younger you can explore the idea of parallel pathways with your parents. You and your parents can design a parallel universe that mirrors your experience starting a new enterprise, or owning the family business. During your time on that parallel pathway you will want to design a series of experiences that will develop the competencies necessary to work in a “live environment”. An easy and very minor example of this is to have your parents give you a budget, and you and your siblings design and plan the family vacation this summer. This exercise will teach you compromise, negotiation skills, planning, logistics, and how to work on a budget. There are a lot of different options and examples of things families have tried, but the ultimate purpose is for you to experiment with your competencies in a “safe” environment, meaning a failure won’t result in loss of jobs or significant capital loss.
The core value of the Blaze a New Path concept is that often the next generation believes they’ve missed out on an opportunity to make something of their own, or to create something from nothing the way their parents did. In truth though, each succeeding generation has the opportunity to generate just as much from nothing, in a sense, than the previous one did. The next generation just has the luxury of a pool of resources that maybe their parents didn’t have, and that’s a good thing not a bad thing.
Good Luck
Practical Summary
- View your family as an enterprise, not a business or a pool of money. This opens your perspective to opportunities for growth and exploration.
- Develop personal interests; this will be your guide to future industries or enterprises you might invest in.
- Start with conversations, and then explore a parallel pathway/universe to develop your competencies prior to going “live”