Five Ways to Strengthen the Family Business

By Amanda Radke, Ag speaker/ BEEF blogger

This past year has brought incredible challenges and hardships for people here and around the world, from isolation, to sickness, to depression, to loss of life, jobs, and opportunities.

Despite these hardships, what I’ve realized is it’s even more important to rally together with our friends, neighbors, and peers in this agricultural community that we all love.

With that reminder, I also think it’s important to tighten up and strengthen our farm operations. Tough times can be made even more challenging when family dynamics and unresolved conflicts create tension and vulnerabilities in the business.

SKM Associates, LLC, is a family business consulting company that offers advice for entrepreneurial families with multi-generations in the business, and I often reference their work for inspiration on what my family farm could do better in how we meet the needs of familial relationships while also strengthening the business we seek to grow and improve upon each year.

A recent article titled, “Challenges Can be Overcome in a Family Business”, offers five things we can focus on to help our family business sustain themselves for the long haul — in good times and in bad.

1. RETENTION OF BOTH FAMILY AND NON-FAMILY TALENT

According to SKM, “Retention is nurtured through a level of trust, commitment to the vision, strong job knowledge, fair pay, a winning culture, and opportunity for growth.”

2. WISE FINANCIAL MANAGEMENT WITH PATIENT CAPITAL

“Maintaining the concept of frugality allows the family, the business, and the ownership to be ready for the next opportunity and to weather the next downturn,” says SKM.

3. OPENNESS AND TRANSPARENCY

“The family has a willingness to discuss sensitive issues with transparency and openness,” they say.

4. EFFECTIVE STRUCTURES

SKM explains, “There is a commitment to systems, processes, and practices that provide the right structure for the family, business and customers.”

5. INTENTIONAL DEVELOPMENT

“Families in business that are committed to the long haul, consistently and intentionally set aside time to discuss and revisit the first four themes so they can keep up with changes in the family, the business, and the ownership,” they recommend.

As we evaluate this list, it may seem basic; however, an honest appraisal of the family ranching business may reveal we are all a bit rusty in one or more of these areas. Consider what you can implement in the next month and the next year, and get to work, for your future in agriculture and for the longterm success and sustainability of your family’s multi-generational enterprise.