Click 'Read Original' for details. Succession is a form of inheritance. Since the dawn of tribes, everyone, every family, and even every dynasty has focused on the issue of succession. Countless palace intrigues and business dramas are built on the conflict of succession. This inheritance is essentially the same as genetic inheritance, regardless of one's identity. Ideally, everyone hopes to pass on their career and position to their descendants. The same applies to distributors: they all hope to hand over their business to their children upon retirement, even if the business is not what the children need. This is an instinct of life. Therefore, this article will not discuss theoretical succession methods. For example, the succession of "professional managers" might have a slight chance in upstream enterprises. But in the trade sector, whether due to national characteristics or the professional environment, talking about professional manager succession is tantamount to nonsense. Those who force it often end up with regrettable outcomes. In most cases, before retirement, distributors think every day: "How can I make my children not resist doing business? How can I make them take over well and do even better?" The Most Headache-Inducing Situations for Second-Generation Business Succession 1. The "second-generation business" has no understanding of, interest in, or willingness to take over the parents' business. The reason for this is partly related to the parents. Most distributors work hard all their lives, especially in FMCG, and are particularly frugal, but they are willing to spend money on their children. The children have received higher education, have a broad vision, and have little understanding or interest in their parents' business. This situation is very headache-inducing for distributors. If the business is not doing well, it's easier; they can just close it upon retirement. But if the business is doing well, closing it is tantamount to denying the distributor's lifelong struggle. Some experts suggest that in this case, professional managers can be cultivated to take over, with the children only acting as shareholders. However, this plan may not be advisable. On one hand, trading companies often lack standardized operational experience in equity and finance, and unprofessional operations often lay the groundwork for future disputes. On the other hand, in China's current business environment, unless it's a listed company, the separation of ownership and management rarely ends well. Historical experience tells us that when the master is weak and the minister is strong, the throne is usually usurped. Therefore, when the child clearly expresses unwillingness to take over, the distributor can first look within the family for a nephew or other relative who has the ability, willingness, and potential to be cultivated. If there is one, try; if not, before planning retirement, seize the opportunity to decisively sell the company without hesitation. Even if it's a lifelong career, when there is no suitable successor, one should practice detachment. If the relationship with the management team is good, consider selling the company to them, which also serves as a favor and a keepsake. 2. The "second-generation business" can take over, but has serious conflicts with the parents and veterans over concepts. Bosses who can become distributors often have strong personalities and abilities, and their achievements prove that most of their past decisions were correct. But their children may not think so. Different educational backgrounds, life experiences, and abilities to understand and accept new things often lead to different business philosophies, management styles, and conflicts. First, understand that this intergenerational conflict is normal and reasonable. Even the post-90s employees are hard to manage. Distributors should first accept and view this conflict rationally; being tough will only make things worse. Second, when retiring, do not "retire but not rest"; truly let go and delegate. If you are not assured of handing over, the correct way is to be diligent during the cultivation process, allowing the successor to grow into an excellent and qualified "second-generation creator." Do not keep pointing fingers and interfering too much after retirement. Third, many second-generation successors have many opinions about the original veterans' concepts and management methods. Distributors should design exit channels for veterans who cannot keep up with the company's development, and communicate with the second generation in advance for those who can keep up. Similarly, these tasks should be implemented gradually a few years before preparing for retirement. 3. The "second-generation business" takes over but lacks operational capability. The problems mainly lie in two aspects: the cultivation time is too short, and the cultivation method is not quite right. Some "second-generation business" may have just finished their studies, and within two years their parents are too old to work and need them to take over. Lacking sufficient time for practice and tempering, the abilities and experience of the "second-generation business" are often insufficient to lead the entire company forward. In this case, the parents or veterans can only hold on for another two years, giving the "second-generation business" more important tasks and learning opportunities, allowing them to grow more before taking over. In terms of cultivation methods, some distributors do not pay much attention. Because their own entrepreneurial process was like crossing the river by feeling the stones, learning while doing, they often arrange a grassroots position for the "second-generation business," constantly rotating positions, and finally handing over after gaining experience. This method is effective in itself. But the "self-taught" nature of the distributor's own entrepreneurship was forced, growing through constant failure and paying a price. If the "second-generation business" still relies on this method to grow, they are just a "copy" of their parents. How can they lead the company to break through past limitations? Therefore, all distributors facing succession issues must seriously consider how to make the "second-generation business" learn and grow more effectively, and how to make them evolve into "second-generation creators." Only then can the business they founded be carried forward and flourished in the hands of the "second-generation creators." How Can Second-Generation Business Evolve into Second-Generation Creators? 1. Successor cultivation must be planned, with at least 3-5 years reserved. The successor candidate of a dynasty is cultivated from the moment of birth. Distributors naturally do not need to go that far, but for the planned cultivation of the "second-generation business," three to five years is necessary. Phase One: When first entering the workforce, the child should not be placed by your side. When the child first enters society and is still a blank slate, it is best not to let them join your own company out of fear of them suffering. You can send them to work at some well-regulated enterprises, preferably the brands you represent. Some well-known enterprises should also consider helping distributors with successor training based on current circumstances. This is a win-win situation. On one hand, it is a social responsibility of the brand to the distributor; on the other hand, letting the "second-generation business" receive one to two years of "education" in the enterprise also enhances the loyalty and capability of future channel partners. Remember, at the beginning of the "second-generation business"'s exposure to the world, not only should they not be placed in your own company, but sending them to a friend's company is also inappropriate. Once your growth depends on others' care, growth will be limited. Of course, some "second-generation business" have high aspirations and want to start their own business from the beginning or after learning from an enterprise. As long as the cost is bearable, distributors can support them. If the child is willing to accept, the distributor can act as their "entrepreneurial advisor." Phase Two: Enter the family trading company and progress step by step. After gaining some experience, the "second-generation business" can enter the family company, but must start from the grassroots. During this process, the distributor should not only provide guidance but also designate two or three "mentors to the prince," usually elites in management or sales. In this phase, it is best not to arrange specific management authority, allowing a period of adjustment between the "second-generation business" and the employee team, and also letting them understand the company's team, business, and other aspects. Finally, only when it is judged that the "second-generation business" has gained the recognition of the vast majority of employees and is sufficiently familiar with the overall situation and specific business of the company, can the distributor truly let go and let the "second-generation business" begin to take charge of the company's operations and management. 2. Continuously learn, learn correctly, and let the "second-generation business" evolve into a "second-generation creator." The market environment faced by the second-generation business today is vastly different from that of the older generation. Modern market competition is brutal. Often, your failure is not because you haven't progressed, but simply because your progress is slower than your competitors. Therefore, continuous learning and correct learning are the keys for the "second-generation business" taking over to grow into a true "second-generation creator." First, learn from excellent people internally, including upstream and downstream. Learn from parents and veterans. What the "second-generation business" should learn is often not their experience, but their entrepreneurial spirit and culture. The parents' experience may be outdated, but the entrepreneurial spirit and the company's accumulated culture are what the "second-generation business" should learn and identify with. Once culture and spirit are aligned, some conceptual conflicts between the "second-generation business" and the veteran team become easier to resolve. Second, continuously learn externally. Internal learning is effective, but its ceiling is often the boss himself. For a "second-generation business" to grow into a better "second-generation creator," they must not only learn internally but also maintain an open learning state and strive to seize external learning opportunities. External learning opportunities often greatly enhance the "second-generation business"'s strategic vision, business model, and thinking logic. Often, a distributor boss has been troubled by a problem for a long time, but once they go out to learn, they find that others have already had perfect answers to this problem. There are many external learning opportunities, but the time and energy of the "second-generation business" are limited, so they need to participate in learning with real value. For example, on August 20 this year in Shanghai, the "China FMCG Conference" hosted by New Distribution. At that time, the conference will feature Hou Xiaohai, General Manager of Snow Beer, Tao Shiquan, Founder of Jiangxiaobai, and dozens of excellent brand operators and founders, Zheng Hongyan from JD New Channel and other e-commerce platform operators, over 2,000 excellent major distributors, nearly a hundred new consumer brand founders, hundreds of 2019 best new products, and a total of 16 professional summits including video e-commerce, community e-commerce, and new marketing. It is a rare learning journey for the "second-generation business" to evolve into a "second-generation creator." Add the conference staff WeChat to register.