We have heard countless stories of family businesses that involve multiple generations eventually stagnate, missed a changing market, and then close. The feeling of growing up in a family business is still with me today, having memories of never taking a day off and no one ever complaining about the long hours. Growing up I remember the countless life lessons my parents would teach me and having that feeling of being a part of something larger than myself. I fondly think back on family business being the epitome of teamwork- we all had our roles but were never afraid to help someone do their job when they needed it. As I got older, I realized that as I started to have my own ideas on how things could be done, I sometimes got met with resistance.

As the business started to pass to subsequent generations, anxiousness can start to form. The center of all great family businesses is providing a service or product with the customer at the center. But sometimes, that is not enough to thrive and survive and it takes fearless leadership to continue to stay relevant in a changing business environment.How can all members of a family business focus on being fearless in the evolution of their family business, and still maintain the principles that got them there? I will share three simple strategies that family business can implement to keep their core values but to be prepared for a shift in their business environment.

First, great family leaders are not afraid to make a mistake or not afraid to try something new. They are always stretching themselves to test customer preference. If family business leaders take time ask themselves,

‘When is the last time I tried something for the first time?’

When I speak to family business groups there are usually blank stares and then most will tell you it has been a while. I tell them that I am not advocating being reckless in their decisions, but understand the difference of what mistakes are acceptable and which are not. We learn best from our mistakes.Jeff Bezos, founded Amazon in his garage and now a giant online retailer. He noted in a You-Tube Video that they were not afraid of failure. If they were opening a fulfillment center for the 50th time then he expected that to go off flawlessly. However, if it was something new and they were experimenting, they were not afraid to fail. Like Thomas Edison said, it was one of a thousand ways to NOT invent the lightbulb. One needs to challenge their leadership team and ask, what have we not tried that creates a better customer experience and meets their changing preferences.

Secondly, Leaders in Family Business that are fearless at looking for change will work very hard to gather information and insights that help them to see around corners. Being stuck in, ‘this is the way we have always done it’ has merit in some cases, but only if the data proves it so. To see around corners, great family business leaders are avid learners and make it a priority to acquire strong insights and information.

Todays, successful leaders read 55-60 books a year because they understand if nothing new come in, nothing new comes out. Leaders that always seem on the cutting edge are ones that invest in unique ways to gain keen insights and building relationships that help them to see a different perspective. It is hard to run a business and still take time for this investment. In today’s age, there are dozens of ways to acquire information with podcast, audio books, and news feeds. One of the most powerful ways to gain insights are to demand cutting edge information from the sales professionals that call on you. If they are taking your time to just pitch a product for you to buy for your business, then they create no value. Look for partners and vendors that provide key insights into your industry and if they possess information that allows you to see around corners. Instead of them bringing you a fancy sales pitch on their company and product, question them about what they see happening in your industry at a macro and micro level. This will force them to earn the right to partner with you and develop a mutually beneficial relationship. Knowledge is power!

Lastly, the leadership of a family business must build a board of advisors around them that is meant to hold them accountable. They are not afraid to hear the good, the bad, and the ugly. We hear it is lonely at the top, but it can be even lonelier in a family business when you feel like you are a small boat on a large ocean. Build a team of mentors with each person designed to give you council on a specific aspect of your customer interaction. This group needs to extend past your traditional team of a CPA, banker, or attorney. What you want is to have people that can hold you accountable for actions that you take and give you time to be able to debrief on your success and failures.

Businesses thrive and fail each day and for many reasons. The small family business that we never want to see close are the ones that have the customer at the center, provide meaningful jobs for family and members and their community, and that lead with integrity and servant leadership in the community.

As noted, it is important to have the customer at the center of their business but in order to evolve, a family business has to be able understand the shift in customer preference. Being fearless and trying things that are new, acquiring strong insights into their industry, and have a team to hold them accountable will be able to evolve and survive with the changing times.