12 Reasons Why Family-Owned Businesses Should Think About Seeking Outside Leadership

Hi there! Let me tell you about something important – the benefits of having someone from outside the family take on a leadership role in a family-owned business. It might sound strange at first, but trust me, there are many good reasons to consider it. Trust me! Here are twelve good reasons why it could be a smart move:

1. Fresh ideas: When someone new comes into the picture, they bring fresh perspectives, innovative thoughts, and new ideas that can help take the business to new heights. Exciting, right?
2. Expertise: These outside leaders often have extensive knowledge and experience in leading companies. They can bring in different expertise in areas like finance, marketing, or operations that can really make a difference.
3. Growth opportunities: Sometimes, a fresh pair of eyes can spot opportunities for growth that the family might have overlooked. Having an outside leader can open up new doors and help the business expand in exciting ways.
4. Objective decision-making: Family dynamics can sometimes get tricky, and emotions can cloud judgment. But with an outside leader, decisions can be made more objectively, without any personal biases getting in the way.
5. Conflict resolution: Speaking of family dynamics, conflicts can arise. With an outside leader, they can impartially mediate any conflicts that might occur, helping to preserve family relationships while keeping the business on track.
6. Succession planning: Introducing an outside leader can help solve the challenge of succession planning. They can work alongside the family to develop a clear and smooth transition plan for the future of the business.
7. Professional development: Working with someone from outside the family can provide a unique opportunity for family members to learn and grow professionally. They can gain new skills, broaden their horizons, and become even better leaders themselves.
8. Increased credibility: Having an experienced outside leader can enhance the business’s credibility in the eyes of customers, investors, and partners. It shows that the business is serious about growth and professionalism.
9. Networking opportunities: Outside leaders often come with their own network of contacts and connections. This can open doors to new partnerships, collaborations, and business opportunities that the family might not have access to otherwise.
10. Fresh energy: Sometimes, a business can benefit from a fresh burst of energy and enthusiasm. An outside leader can inject new life into the business, motivating everyone and creating a positive atmosphere.
11. Learning from mistakes: Outside leaders have had their fair share of experiences and learned from their own mistakes. By bringing their wisdom, they can help the family avoid making similar mistakes and guide them towards success.
12. Preserving family harmony: Lastly, having an outside leader can help maintain family harmony. With clear roles and responsibilities, everyone knows what is expected, reducing conflicts and allowing the family to focus on their relationships outside of work.

So, there you have it – twelve reasons why considering outside leadership in a family-owned business is a smart move. It might seem strange at first, but trust me, it can bring a whole new level of success and growth to your business. Give it some thought and see where it takes you!

You might not like the idea of someone from outside joining as a leader in your family-owned business, but sometimes it can actually be a good thing. I asked 12 members of the Young Entrepreneur Council (YEC) to share their thoughts on the following question:

Should you hire people from outside your family for top roles in a family-owned business? Why or why not?

Here’s what the YEC community members had to say:

1. Hiring an Outsider Reduces the Risk of Relying on a Single Person

When you bring in someone from outside, you make the position less dependent on one person. It’s hard to find a replacement for a family member. But an outsider can be replaced more easily. Having outsiders on your team from the beginning will allow your business to grow and adapt better. ~ Mark Daoust, Quiet Light Brokerage, Inc.

2. Hiring an Outsider Brings in Fresh Perspectives

I’m the President and CEO of my family-owned business, but our Chief Operating Officer (COO) isn’t a family member. He brings a fresh perspective to our discussions that we may not have within our family dynamic (I work with my brother and two sisters too). Having an outsider’s point of view also allows him to be a voice of reason when we face any kind of situation. And I must say, it’s been working out really well.

3. The Benefits of Bringing in an Outsider

I believe it’s important to have outside influence in a family-dominated organization. No matter how hard family members try to keep their personal and business lives separate, conflicts are bound to arise. That’s where an outsider’s perspective comes in handy. They help us manage those conflicts and, in many cases, even prevent them. But let me be clear, despite the challenges, I absolutely love working with my family!

4. Why It’s Beneficial to Bring in Outside Talent for Your Company

When it comes to running a business, it might be tempting to keep everything within the family. But here’s the thing: just because someone is related to you doesn’t automatically mean they have the right skills and experiences for a particular job. This is where bringing in an outsider can really make a difference.

An outsider, someone who is not a part of your family or inner circle, often brings a fresh perspective and a different set of skills to the table. They can complement your own strengths and provide valuable insights that you might not have considered otherwise. And because they have no emotional ties to your business, they are more likely to offer objective opinions and make decisions based on what’s best for the company.

So instead of limiting yourself to just family members, consider the benefits of bringing in outsiders who can bring new ideas and perspectives to the table. After all, an outsider might just be the missing piece that your business needs to thrive.

5. How Onboarding an Outsider Can Enhance Communication within Your Company

Family can be a complicated mess, especially when you throw in a business and a ton of money. To keep things clear, it’s important to establish specific roles for everyone right from the start. Bringing in outside team members to act as managers can really help with communication. They bring a fresh perspective and might have different ideas. – I, as Curt Revelette from Jonathan’s Grille / Vet On Demand, believe this.

6. Gain a New Perspective with Outsiders

Having a family business is great because of the loyalty, but sometimes that loyalty can blind you to the fact that someone may not be the right fit for a job. It’s wonderful to work with family, but it’s important to check if it’s clouding your judgment about your employees and their performance. Getting input from outsiders can give you a whole new perspective. – I, as Adam Steele from The Magistrate, want you to know this.

7. Why You Should Consider Bringing in an Outsider to Boost Your Leadership

I highly advise you to bring in someone from outside your organization to enhance your leadership skills. However, it’s important to make it clear to everyone that this person will be working under your guidance. By doing so, you can amplify your own leadership and provide a great role model for others to follow. – Kevin Xu, Mebo International

8. How an Outsider Can Help Resolve Conflicts in Your Leadership

When I was growing up, my family had a business. I’ve seen firsthand how hiring family members can create negative vibes in the company culture and put unnecessary pressure on those families. However, if you have to do it, it’s important to bring in outside leaders. Even though I don’t believe that nobody outside the family can do the job better, it’s a way to show fairness.

9. An Outsider Can Bring Balance

The only reason a family business shouldn’t hire an outside leader is if the head of the family is not ready to step aside. Otherwise, having an outside voice and influence can often bring the balance needed to run a business. It’s like having a neutral third party guiding the way.

10. It Varies

If your family-owned business has been a success and you’re confident that the current and future family members involved know how to run it effectively, you don’t need to bring in anyone else. However, if you start to see the family causing harm to the business, then it’s important to consider bringing in outside help. – Murray Newlands, Due.com

11. Focus on Family Relationships First

Family-owned businesses can sometimes be as dysfunctional as the family itself. It’s not just about the skills of outsiders in the industry; they also need to be able to navigate the unique dynamics of a family business. The stronger the relationships between family members in the business, the more likely outside leaders will succeed and contribute to the company’s growth. – Christophor Jurin, Construct-Ed, Inc.

12. Fresh Perspectives: When an Outsider Joins the Family

Running a family-owned business can bring up challenges that might be unfamiliar to those who aren’t part of the family. But sometimes, adding an outsider to the mix can be just what we need to spark new ideas and solutions. To make this transition work, the family and the outsider must have open and honest communication about their needs, values, and goals. While it may not be possible for every family-owned business, it’s definitely worth considering. ~ Anthony Pezzotti, Knowzo.com