Every great business starts with an idea – a spark of inspiration that drives the founder to pour everything they have into building something from the ground up.
Whether it’s creating an innovative product, providing a unique service, or solving a problem no one else has tackled, the founder’s initial drive and passion are what set a company apart from the rest.
But what happens when that founder isn’t around anymore? How can a founder maintain that same energy, vision, and determination that was there at the beginning?
As a family business advisor and fractional CFO, I’ve had the privilege of helping many businesses navigate this exact question. Here’s what I’ve seen work well.
1. Connecting the past, present, and future
When transitioning the founder’s mentality to the next generation, it’s essential to continually refer to the company’s origins and connecting it to where the business is in terms of the founder’s vision. This reinforces the sense of continuity, ensuring that the next generation understands the ‘why’ behind the company’s culture and decisions while aligning them towards a shared vision.
Tip: As a family business advisor, I use the power of financial history as a tool to make those connections. For example, I show how decisions made 10 or 15 years ago have shaped the company’s current financial health. When decisions were made, what principles have been followed to make decisions and how we think current decisions are going to help the business achieve its vision. By doing so, the founder can provide a framework for the next generation to build upon while ensuring they don’t lose sight of what made the business successful in the first place.
2. Relentless focus on innovation
Founders don’t just create businesses; they revolutionise industries. The founder mentality is rooted in constant innovation, asking ‘what’s next?’ and challenging the status quo. As businesses grow, it’s easy for operational pressures to stifle creativity. But maintaining that innovative spark ensures that the business remains competitive, adaptable, and relevant.
Tip: Even as the business transitions to new hands, it’s essential to keep fostering an environment where creativity thrives. The next time the business is reviewing it’s strategy, get the future leaders involved in coming up with new innovative ideas and encourage them to ask questions.
3. Leadership and accountability
As the founder, you may have a unique skill set that made the business successful. However, your successors will need to develop their own skills to manage the business moving forward. Investing in leadership development and training ensures they’re equipped to take over the business.
Tip: A useful strategy for cultivating leadership and accountability in successors can be through involvement in management and business discussions. Encourage the next generation to have conversations with external advisors and the CFO. Bring them into advisory board and management meetings and give them responsibility to run one or two agenda items. Gradually assign them specific responsibilities, starting with small tasks and expanding their role over time as they gain experience and confidence, ensuring they also have a deep understanding of how the business works from the ground up.
4. Staying close to the customer
Founders build businesses based on an intimate understanding of their customers’ needs. They are driven by a passion to serve and create value for those who matter most – their customers. As businesses grow, it’s easy to lose sight of the customer experience. However, passing on the founder’s mentality can ensure that the business stays rooted in the customer-first approach.
Tip: The next generation of leaders must continue the founder’s commitment to understanding the customer, staying attuned to their changing needs, and ensuring the business remains responsive. Try introducing them to clients early on in their journey and quiz them on how well they ‘know their customers’. This can be a useful way to encourage the next generation to get closer to businesses customers.
Maintaining the founder mentality across generations
The founder mentality isn’t just for the original creator of the business. It’s a mindset that can – and should – be passed down to future generations of leaders, employees, and stakeholders. By encouraging this mentality at every level of the organisation, companies can ensure that they continue to thrive, innovate, and grow, regardless of who is at the helm.
Ultimately, the founder mentality is about more than just staying true to the past; it’s about ensuring the future of the business is as bright as its beginnings. When the original vision, passion, and commitment to excellence are woven into the fabric of the company, the business can continue to make an impact for generations to come.
This first appeared in the February issue of ProPrint magazine. Read the original article here.
Andrew Ash is a business advisor, fractional CFO, and tax agent. He can be contacted at pfbconsulting@outlook.com or 0412 055 814
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter
