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Of all the challenges entrepreneurs face, preparing their children to take over the reins of the family enterprise is one of their most difficult. How do we transfer knowledge and prepare young people when we have no idea what the world will look like in 20 years, or even two months from now?

Planning ahead is key to preparing young people for the future, both financially and strategically. When it comes to the right education, many families choose to give their children the chance to study at a Swiss boarding school, like Institut auf dem Rosenberg. With over 127 years of experience in educating students from entrepreneurial backgrounds, we are well aware of the questions parents have. What can families do to ensure the next generation has the tools, the perseverance and the hunger to succeed? In our experience, there are four key elements.

Building legends

"Mom, tell us the story how grandfather opened his first business!" Kids are curious and family businesses are the stuff of legends. Entrepreneurial families thrive on these stories, such as how the first million was earned and what opportunities opened up next.

It’s crucial that these legends are passed on from generation to generation. What's even more important is that they not only include stories of success but also the hardships, the setbacks, as well as the humble origins. The next generation should not take success or fortune as a certainty. They must learn to be grateful for the opportunities given to them and know that success is not perpetual but a privilege, which must be respected and re-earned by every generation.

Knowledge is worthless

...without the know-how and skills to apply it. Just think back to your days sitting in a mathematics lesson. Today, even a simple device like your phone would do a faster and more reliable job at solving any of the complex exercises. Any of the facts you used to learn by heart are now available to you (and millions of others) at any time with a click of a button.

Naturally, students must still go to school and understand the concepts taught in sciences, humanities and art, but the transfer of knowledge has never been as important as it is now. What we need to teach our children is how to use information acquired in one area and to reapply it in an entirely different field. Creative thinking and the ability to see links where others don’t are essential skills for any entrepreneur.

At Institut auf dem Rosenberg for example, we want to give students a chance to apply lessons in real-life situations, often at first-year university level. So, we offer co-curricular courses on public speaking, the arts, business management (including family business and social entrepreneurship), science and technology, hotel management, as well as leadership, just to name just a few. The idea is for every student to explore their talents while receiving opportunities to apply traditionally acquired knowledge in the real world.

Work is virtue

Many children and teenagers are often completely unaware of the value of money and time required to earn sufficient funds to buy the latest iPad or Sneakers. And how would they know? Without ever working there is a risk of falling into an "instant gratification" mindset.

Families who have handed over companies from generation to generation have often managed to preserve a strong work ethic, requiring their children from a young age to take over small, basic assignments and in return receiving a small "salary." This practice teaches patience, appreciation for the value of money and long-term planning.

Similarly, at Institut auf dem Rosenberg, students are given the chance to start their own ventures. Helping to organize the annual school ball or planning for a charity event may look easy from the outset but students quickly learn how much planning, hard work and perseverance is required to overcome challenges. And they thrive when they succeed.

Survival of the fittest

Contrary to popular belief, this famous quote by Darwin does not mean that the strongest wins but that those who are most adaptable have an advantage over others. Getting accustomed to a new environment such as a Swiss boarding school at a young age can foster adaptability and social skills, while opening up an international network of peers.

Ultimately there are many factors which can determine the fate of the family enterprise in the next generation. Providing future leaders with the right background and education, however, ought to be a vital part of the overall strategic planning.