All of This, My Son, Will One Day Be Yours
Being an entrepreneur is challenging, being an entrepreneur and leading a family business is very challenging, and being an entrepreneur and a daughter-in-law who leads a family business is an extraordinary situation. When I took over the business from my father-in-law, I searched for every bit of information to ensure a smooth transition and continued development of the company. Unfortunately, there was very little information available in our business literature and environment. I could, for example, learn from family businesses in my surroundings that had already gone through the process of transferring ownership from founders to successors. However, as Tolstoy once wrote that every unhappy family is unhappy in its own way, so too every family business has its own unique problems. Those practical examples were therefore of limited use to me.
While researching the concept of family entrepreneurship in Croatia, I came across the business magazine Lider, which organizes conferences specifically on this topic. I signed up and, at my very first event, encountered the work and persona of Boris Vukić. I liked his simplicity in addressing the complexities of family business issues, and I was happy to buy his book.
At first glance, Boris Vukić’s book seems rather modest – relatively thin, without a pretentious title, and featuring a picture of the author gently smiling on the back cover. But after reading it, one concludes that it should not be modest at all and deserves a place on many desks and private bookshelves. The author tackles the complex topic of family business with the aim of guiding readers through a successful transition from founder to second generation. It is estimated that over 50% of employees in Croatia work in family businesses, so a successful transition is crucial not only for employees and families, but also for the country. This book certainly contributes to raising awareness on the subject.
“All of this, my son, will one day be yours” is a phrase that hides many responsibilities and challenges that most business heirs are unaware of. For the transition process to go as smoothly as possible, it is necessary to prepare the successor, the company, the founder, and the family. These four categories are exactly what the author covers in the book.
When writing about successors, the author emphasizes that they must primarily act as managers. Their fathers – the founders – acted as entrepreneurs, but now, after 20 or more years on the market, what is needed is a good manager who will professionalize the business and ensure its continued growth and development.
Preparing the company for transition means ensuring its sustainability, profitability, and transferability. This is a very important task that many founders, unfortunately, do not think about – in most cases, business is handed over haphazardly. Every founder’s goal should be to leave behind a “healthy” company so that the successor does not waste time solving old problems but can instead focus on reaching new goals.
Preparing the founder to hand over their “third child” to someone else’s management is a special challenge. The founder has been present for years, and employees, business partners, and family members are used to their way of working. Few of them even want a change, so the founder often lacks support for stepping down – except from the successor. Founders also carry the burden of deciding when to withdraw from the company. Those who manage to exit the operational business in a planned manner, secure their financial future, and perhaps even start a second career “in their golden years” are both wise and fortunate.
Every family member has their own idea of which direction the business should take and what that will mean for them. Naturally, many end up disappointed (while others are delighted) when they realize that their scenario did not come true. Few companies actually take the time to clearly define – in writing – who in the family will have ownership, who will be part of the leadership structure, and who from the immediate or extended family will have a job in the company. The author offers a very useful proposal for what to include in an official document and how to conduct discussions and make agreements within the family.
I didn’t have this book when I took over the business from our founder, but I recognized many of our own missteps in its pages. As a co-owner, director, and mother of two, I’m glad I have it now – it inspires me to reflect and take concrete steps regarding the future of our family company.
Mirjana Vučetić, Director