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There is something magical about a family business. Some of these companies have been in the family for generations. Great-grandfather started it at the beginning of the last century, grandfather took over the company in the turbulent 50s and 60s and your mother became the first female director in the 80s. And now it’s your turn. You have been working in the company for a number of decades and know it inside and out. All your life you have wanted nothing more than to continue the tradition. In fact, your 10-year-old daughter is already dreaming of a future in the family business. But there is a lot involved in such an acquisition. And you will have the necessary responsibilities on your shoulders when you take over. But with a sensible policy, the next generation will soon be able to continue the company.
Keeping the company healthyToday the financial risks are great. Developments are moving quickly, and the necessary investments sometimes cost a lot of money. And then you also have to trust that customers will pay on time. You can reduce the risk by choosing to have invoices financed in advance by Impact Factoring. This company takes over invoices from entrepreneurs. The amount of the invoice will be deposited into your account and you can dispose of it freely. A percentage is deducted for the service, but with this you have also bought off the risk of late payment. The factoring company takes over the collection. If the customer pays properly, there is no problem. If he remains in default, the factoring company will provide a payment reminder, reminder and, in the last case, collection or going to court for seizure.
Make new investmentsNaturally, as the fourth or fifth generation in the company, you want to ensure innovation. New investments are needed for new machines, new products or a completely new way of working. This often requires a business credit. To qualify for this, annual figures and a good business plan are often required. Banks in particular are cautious about investing in companies. But there are also investors who are willing to take a risk. They are sometimes willing to invest a million euros or more, but in return the investor receives a share in the company. This means that you partly relinquish control. But on the other hand, you can take a new path with the company without immediately putting it on display in its entirety. The name can be retained and the staff, who have often been employed for generations, can also stay on.
Be careful with big changesNaturally, as a new director you want to modernize the company. Of course, there are things that you thought years ago: when I become the boss, that will be the first thing I will do differently. And in some ways you may just be right. Solar panels on the roof of the office are definitely a good idea. Definitely making the production process more sustainable. But remember that not every change is an improvement. Get good advice from ‘old hands in the business’. The ideas they have are not always outdated. Use it to your advantage and don’t just sweep them off the table. Of course, as the next generation you can leave your mark on the company. But maintaining some old values can sometimes not be as bad as you might think.