Currently, there is a generational gap within family businesses, and current owners are discovering a huge difference between their business visions and those of their respective heirs. By 2028, more than $10 trillion in family-owned and privately held businesses in the US will have been transferred to the next generation. Even if some doubt it, there is great hope in the management of the new owners, especially because of their ease and confidence in technology.
The previous generation spent years building business relationships based solely on face-to-face conversations and phone calls. However, 78% of millennial leaders report actively seeking new technologies to help them manage their businesses and attempting to incorporate them into all areas of the company. With this generational transition already underway and increasingly successful, it is becoming urgent for institutions to modify their management style and open themselves up to technological trends.
37% of millennial business leaders say they struggle to get their business (especially management) to understand the importance of having a strong and active digital strategy. If steps aren't taken to innovate, the company will likely not be ready for the next generation to take over.
How can we recognize and overcome these differences?
It is essential that predecessors support the new entrepreneurs' desire to succeed and are always open to new ideas, especially when it comes to technological trends. Cloud-based systems, for example, can greatly improve business operations with the ability to simplify tasks, store and protect large volumes of data, manage orders, inventory, merchandise, finances, customer service, and more.
After two years at the helm of Becker Safety and Supply (a family business previously run by his father), Devin Becker decided to find a new method for inventory control. The old way of doing things consumed too much of the team's productive time, in addition to frequent errors and data inconsistencies.
That's when he decided to invest in a new cloud-based Enterprise Resource Planning (ERP) solution. Now, the company has an integrated system – ERP, inventory management, warehousing, CRM, and commerce – that allows them to better manage key business processes, invest more time in increasing profitability, and have virtually eliminated error occurrences.
Advantages of cloud-based ERP and why it's the best option for all businesses.
“Having an integrated system not only simplified our processes but also opened up new opportunities. We started as a small wholesale distributor and now we have an e-commerce website, a mobile website, a retail store, and a large warehouse. Without cloud-based technologies, we wouldn’t have been able to manage all these different channels efficiently at once.” (Devin Becker)
Advances in technology allow family businesses to remain competitive against startups and emerging new business models. Inefficiencies in independent systems are eliminated, enabling simplified processes, cost reduction, and continued growth.
Is your company ready for this technological shift? Get a presentation on what the world's #1 ERP can do for you!
