The desire of every successful business owner is to Extend the Life of their business beyond the first generation. Although this desire is a common desire. It fails 90% of the time. According to global research, only 10% of family businesses. Will celebrate their 100th year anniversary. This massive death of businesses is due to the loss of certain critical assets you will discover here today. To build a lasting legacy. Family Business leaders must transfer the seven critical assets to the next generation. But before I show you these assets. Let me first show you how these assets are formed.
The process of building a successful business from scratch. Does something to the founders of businesses. That transforms them from ordinary Men to extraordinary Men. These extraordinary Men develop certain abilities on their journey to wealth. That has now become critical assets. These assets must be transferred to the next generation for the life of a business to be preserved. The loss of these assets is the reason why successive generations fail. Ordinary Men do not create or preserve businesses. It takes the reproduction of extraordinary men. Across successive generation to keep businesses alive. When the founder of a business dies without transferring these assets. A death sentence is cast on the Business. Businesses that stand the test of time. Have founders that have mastered the art of reproducing in the next generation. The seven assets that made them extraordinary. When successive generation develops these assets. It becomes easy for them to create their own colossal shoes. It is the timely transfer and development of these assets. That transforms the next generations from consumers of wealth to producers of wealth. This is the only way to make a business last for many generations.
So, what then are the seven critical assets that transform Men?
First is a Wealthy Mindset. The second is Unshakable Values. The Third is a Good Reputation. The Fourth is a Personal Philosophy. The Fifth is a Personal Longevity Health Habit. The Sixth is Wealthy Relationships. And the Seventh asset is a Profitable Business Asset. To understand how each of these assets affects business longevity. Let look at them in more detail.
First, a Wealthy Mindset. Founders of businesses have a certain way of thinking that is uncommon among ordinary men. This unique way of thinking is what supports the creation and preservation of wealth. Critical elements of a business owner’s wealthy mindsets include-an undying belief in possibilities. Confidence in their abilities. A never quenching hunger to solve problems. A Selfless act of Service and contribution. And so on. While ordinary men see impossibilities, barriers, and limitations. Successful Business Men turn impossibilities to possibilities. For successive generation to recreate wealth. And preserve family assets. They must develop a Wealthy Mindset.
Next is a set of Values. Successful Business owners commit to a certain set of values. That guides their business decision. And govern the way they interact with other fellow men. These values are a self-imposed standard that directs how they do business. Although the business environment challenges these values. They are willing to defend it and pay the price. They pay the price because they know that paying the price is easier than violating their own values. These values not only guide them in business. It also protects them from making regrettable mistakes. One of such values is integrity. Integrity is not Perfection. But the ability to integrate one’s words, deeds and actions. Extraordinary business Men stand for something that they are proud to defend. Successive Generations must get help to develop these kinds of values.
Next is Reputation. Reputation is the Public Perception Consumers have about a Business. And the respect they have for the business leader. A good reputation is built over years of sacrifice, sweat and tears. And must be guarded with care. To ensure long-term profitability. Successive Generations must know how to boost and sustain a good reputation. And how to stay away from things that destroy it. Reputation is the consumer’s own reality and once it is destroyed. A Business bleeds to death.
Next is a Personal Philosophy. A Personal Philosophy is a series of conclusions. A person makes from their own experience and their understanding of the world. Business owners have a well of experience. That they can draw conclusions from. Reflecting on their life’s journey. And extracting certain critical conclusions and lessons is helpful for the next generation. It eases their decision-making process. Serve as guiding principles for them and reduces the repetition of mistakes. Great philosophies are not just tactical wisdom that changes with time. There are fundamental principles that are evergreen in nature. Examples of philosophies that are helpful to the next generation are. A difficult decision-making Philosophy. A Crises Management Philosophy. A Business Partnership Philosophy. A family Unity Philosophy. A lasting Marriage Philosophy. And so on. Leaving the next generation with a pocket of evergreen philosophies. Will cut-down the repetition of wealth dissipating mistakes.
Next is a Personal Longevity Health Habit. The greatest asset in life is health. Losing a family or critical business member to preventable sicknesses and disease. Due to unhealthy lifestyle choices is the greatest Tragedy in life. It is unhealthy for a family and unprofitable for a business. Although life is limited its length can be negotiable. Its length can be negotiated through deliberate health habits. Business leaders must demonstrate good health habits. And they must also create a culture that promotes the longevity of life. This is the only way to preserve the human capital that drives a business. Successive generations must know how to live long, healthy and productive lives.
Next is a Wealthy Relationship. To get to a certain level of wealth. Business leaders had to seek the help of other people. This means that every successful business leader has valuable networks. That is beneficial for the next generation. But these relationships will not just pass on to the next generation. They have to be deliberately cultivated to keep them Fresh and beneficial. Successive generation must know how to expand the critical relationship pool of business. Nurture them and extract value from them. Without the creation and maintenance of critical relationships. It is hard for the next generation to lift the business beyond the laurels of its founders.
And last but not least is a Profitable Business Asset. Not all businesses are set up to extend beyond the Founders generation. Certain businesses if critically analyzed by independent investors. Will be classified as liabilities and not assets. Dumping a liability on the next generation is cruel. To pass on businesses that will last. A business owner must be willing to analyze his business through the eyes of an investor. Businesses Investors reject or cut down their value have certain fundamental flaws that must be fixed. To make them viable for the next generation. Business Leaders must thus prepare their businesses. And hand over Assets and not liabilities.
Building a company that lasts is not an easy feat. Businesses with staying power continually innovate. Adapt to changing market conditions. And embody these seven critical assets that keep them breathing for many generations.
True Business Longevity is achieved when a business focuses on equipping its Human Capital with these seven Assets.
Grace Agada is the First indigenous Family Business Longevity and Legacy Expert. With unique expertise in helping Self Made Business Men Transition from Vanishing Mortals. To Men with Indestructible Name, Wealth and Legacy. Grace’s philosophy is simple. Successful Business Men do a lot of good in the world. This good should Expand. Receive great recognition and extend beyond life. Her goal is to help Family business Men Eliminate factors that murder Businesses. Differentiate and deepen Customer value. Create, Own and Dominate New Market Space. Lead Innovation. And reinvent their Businesses for Generational Relevance. To learn more about how Grace can help you send an email to [email protected].
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