Every entity goes through a life cycle and the needs and demands of the entity change as one moves from one stage to the other. Each stage of growth brings with it unique issues and challenges that need to be managed in accordance with the stage.

In the case of family businesses, the entire span of the life cycle is difficult to project and the business may see transitions over a period of decades. This calls for a rearrangement of leadership styles and restructuring, at times, to best manage the current stage in the business’ life cycle.

At every stage of a family business’ life cycle, the leaders of the business need to look for and align certain key considerations. First, leaders need to decide whether the focus of strategy needs to be internal or external looking, or if it needs to be a hybrid between an inward and outward focus. Second, leaders need to align the culture and values of the organization to the vision and mission. Finally, leadership needs to look at environmental factors to determine how the business can be developed and grown.