Thread by @ondoga

@AgaSekalala, MD of UgaChick clarifies family businesses as one where at least 2 or more family members are involved in the ownership(at the start) and the management of the business. Doesn't count if you're employees or workers in the business.
#360Mentor

The common family businesses in Africa are:
1. Husband and wife(1 is involved in raising capital and the other the operations)
2. 2 Brothers
3. Cousins who have grown up,know each other and understand each other however in the academic sense is a normal partnership
#360Mentor

On vision bearers for family businesses being patriarchal, @AgaSekalala confirms it is common place where a founder established a biz for different reasons including adversity. This founder knows the problem they are trying to solve/opportunity they are trying to grab

And then start to scale to bring aboard trusted co owners or additional individuals to set up a company as per the regulations.
@AgaSekalala and @rkabushenga agree that it is difficult to find trusted partners in business.
#360Mentor

@AgaSekalala says different people have a different starts to family business bse of the nature of the opportunity, time and context.
His father was a management training consultant who opted to set up a small company, start it in a formal way and build it as he had taught others

@AgaSekalala says getting involved in a family business is transitional. You grow up in an entrepreneurial env't and observe people trading, doing agric, putting up structures etc

U then become conscious of the activity called work & realize that the activities are how your parents earn a living.
Back then, white collar jobs were more popular and he reminisces a time when they wd be requested to say what their parents do and he would opt out.
#360Mentor

@AgaSekalala and his siblings would pass by their parents petrol station after school as they had 1 family car, started to get involved in the activities in the shop.
#360Mentor

The time in the shop enabled @AgaSekalala and his siblings to learn
1. How to count money
2. That customer has to hand over enough cash b4 U hand over the good(s)
3. 2 be resourceful rather than let people stand ard
4. U have to give some1 a good in xchange 4 money- (earn)

Cntd.
5. You collect the money, confirm it's accuracy and keep the money in a central place ready to be counted when the day is closed.
These activities formed their view of how the world works because that is what they saw and lived by.
@AgaSekalala

Takeout for Reflection as a parent from #360Mentor.
What view of the world are you creating for your child(ren)?
@AgaSekalala
@rkabushenga

The activities at the shop caused @AgaSekalala to pay more attention to his maths teacher bse he needed to be astute with numbers there4 the learning became functional.
@rkabushenga juxtaposes this with his own experience. He only handled money when his mum sent him to pay bills.

@AgaSekalala and his siblings picked up these values.
1. It is a job
2. Got comfortable discussing money eg. collections
3. Executed transactions - Xchange a good for money
4. Distinguished between personal and business money
5. You have to work really hard to earn

More values;
6. If you say you are going to do something, you must because nobody else will do it.

@AgaSekalala says his Dad was always a figure of authority(boss). He established avenues of accountability in most areas of their lives in a well calibrated manner.
#360Mentor

On decision making dynamics in a family biz, @AgaSekalala clarifies that decision making is not a constant/static. It can gravitate to areas of:
1. Competence - Most competent makes the decision
2. Monolithic - 1 person calls the shots
3. Consensus between 2 people

#360Mentor

Family gatherings are basically family business events and creates an opportunity to discuss certain aspects of the business freely.

There are no rules to when you cannot discuss business.

@AgaSekalala
#360Mentor

@AgaSekalala says bringing the next generation into the family business is not an event. From an early stage it is:
1. Going to see the biz,
2. Being at the biz,
3. Spending time with workers and
4. Playing at the biz
These allow the children to get familiar with the business.

@AgaSekalala involves his children during the P7 holidays in sorting of eggs and chick vaccination as part of awareness &interesting them in the biz.
Egg sorting is to check quality and 1000+ eggs r sorted daily. It is the equivalent of being in his father's shop & builds skills

The routine activities that his children engage in enable them learn the basic disciplines of working, earning, sorting, counting, value for people and value for their effort 💡
#360Mentor

@AgaSekalala himself had mentors like the Late Mulwana who was his boss at one time and would read him the riot act when things were not going well.
#360Mentor

For parents who would like to expose their children to work experience, @AgaSekalala advises that 1 does not necessarily need to own a business. They can use their networks; seek work experiences for the children as long as they can manage the logistics ard that.
#360Mentor

The exposure also enables children understand different kind of work out there and facilitate their decisions on work, maybe take specific decisions to avoid certain kinds of work.
@AgaSekalala
#360Mentor

On children, @AgaSekalala's additional thoughts are:
1. Get them to understand the value of hardwork
2. Grow children beyond an insular environment where there are home watching TV or spending time on gadgets.
3. Involve them in tasks that are repetitive in nature

Parents need to:
1. Get out and see what things are being done
2. Open their minds to different opportunities that exist in several repetitive things that children can try out to start off. That builds a foundation for and prepares them for work using their hands.
#360Mentor

@AgaSekalala invested in the family biz by understanding
1. That the family legacy has to continue- it shall not end with the founder
2. That they will be caretakers to hand it over to the next generation or something that they can also do
3. How it is run and the dynamics

Investment in fam biz ct'd
4.Set up of family biz and governance systems
5.Clarify on conflict resolution- arbitration
6. How to prepare the next generation to take over
7. Skill the next generation - good spotters of talent, great networkers, learning and growth etc.

@AgaSekalala draws us into the aspect of ownership. That in family business, you act on behalf of the family estate and not your personal accord.
He highlights that communication is an important value for transparency and reduce opaqueness in the business.
#360Mentor

On managing competition or jealousy in family businesses, @AgaSekalala says that it may call for the person in authority clarifying the roles of each one in the business.

#360Mentor

@AgaSekalala shares his observations; The Asians have been doing family businesses longer, Ugandan businesses are mainly from and 90's and in Kenya, about the late 50's/60's with the exception of the Madhvanis in 1914.
#360Mentor

Communities are doing more biz,learns how 2 accumulate, save capital & become adept to biz dynamics.
Eritreans save alot of money & allow the most competent to do the investments including where to invest.
@AgaSekalala believes that with time, we shall see better practices in UG.

Depth of history, culture and legacy are contributors to successful family businesses

@AgaSekalala
#360Mentor

To ensure longevity of a family business, @AgaSekalala's nuggets are:
1. Ensure that the business is viable, can pay for itself and is dynamic.
2. Create it to transcend the generation
3. Diversify the business
4. Founder then remains the visionary and takes on an advisory role

Longevity continued:
5. The activities must sustain i.e. money changing hands on a regular basis, collected and put in a till.
6. Split activities into long term, seasonal nature & those that bring in the daily money to cover growth, day to day costs etc.
#360Mentor

Your family will always grow faster than the business and it is important to quickly identify those that are able to work within that particular growth and those family members that may not be interested.

Family business is not for everyone.
@AgaSekalala
#360Mentor

It matters in family businesses who you marry and @AgaSekalala clarifies that its important that the marriage partner is well mannered and has values that mirror those of the biz in the event that an inlaw is involved in the biz.

#360Mentor

To those in family businesses, @AgaSekalala says; It is a long game, a marathon characterized with failures, retracing your steps.
U have more things to look out 4; Profit &loss, the employees, the shareholders, the family. This is reliant on U so 1 needs to be ready!!

Final words from @AgaSekalala. The stigma against working for business men seems to be shifting, maybe bse the brands are stronger over 15 yrs?
He says family businesses are loyal to their employees as well as the founders despite the misunderstanding of family businesses.

Other benefits of family businesses include:
1. Decision making is quick
2. Management of resources can be very fast and efficient
3. They are frugal on things that they do not need
He encourages people to learn more in order to work for or do business with them.
@AgaSekalala

One session where you don't want to miss any word.
Thank you @AgaSekalala for breaking down the aspects of thriving family businesses down so clearly.
Thank you @rkabushenga for hosting. I couldn't help but notice that U are both very good listeners. Thanks 4 leading by example.

Follow @davidkangye for full transcript.
Happy independence day as we #BeautifulUG