Family owned businesses are quite different from small businesses. There is a dynamic within a family owned business that no other business model has: the family dynamic. A functional family owned business is key to a successful business strategy and family strategy. When one part fails, all facets of life can come tumbling down. Therefore, it is important to address this family dynamic outright and embrace it as part of your business planning strategy.
Helpful Tips
When planning a family owned business, make sure you have certain guidelines in place before opening the doors. These guidelines should be followed exactly as provided. This will help prevent favoritism and arguments amongst family members that carry over from work life into family life.
First, make sure you have clear and concise guidelines for entering the family business. This may include considerations such as age, educational attainment, marriage, and even financial stability. The guidelines should be fair to all and easy to understand. The reasoning for these requirements should be clearly defined as well, as to leave little room for interpretation.
Your expectations and goals for each member of the business should also accompany these guidelines for entering the business. Outlining goals and expectations is common in any business. All expectations should be directly related to the position the family member takes within the company. Therefore, should the family member leave the business and the position goes to a non-family member, guidelines are clearly expressed. This way, nepotism cannot factor into the position’s expectations, causing problems down the line.
First, make sure you have clear and concise guidelines for entering the family business. This may include considerations such as age, educational attainment, marriage, and even financial stability. The guidelines should be fair to all and easy to understand. The reasoning for these requirements should be clearly defined as well, as to leave little room for interpretation.
Your expectations and goals for each member of the business should also accompany these guidelines for entering the business. Outlining goals and expectations is common in any business. All expectations should be directly related to the position the family member takes within the company. Therefore, should the family member leave the business and the position goes to a non-family member, guidelines are clearly expressed. This way, nepotism cannot factor into the position’s expectations, causing problems down the line.
Planning
Planning is key to any business’s success. However, family businesses require specific planning to not only create the business, but also to help transition new family members in and seasoned members out. You can establish career training programs to help members achieve their individual goals, mentorships to help the younger members build career goals, and life career plans for senior members. These are tools that can help the family become more interested in being involved in the business. It has the added benefit of further keeping the business side separate from the family dynamics.
Address the Issues
The final step to having a successful family owned business while maintaining a loving family is to address the issues. No issue is too small and no party is insignificant. By addressing each issue as it arises, you provide an opportunity to collaborate with one another and resolve problems that could ultimately seep into the family dynamic.
The key is to remember this: in family business, it is never just business. Each person involved in the business is a person you see outside of the office on a regular basis. It is human nature to feel emotions over unresolved issues. Since the other party is still someone you must encounter regularly, you cannot simply leave your work problems at work. If you allow an issue to percolate over time, a small speck on the horizon can become a looming problem. The issue can become the center of your relationship outside of the office. This can lead to divorce, family rifts, and an overall unhappy life. Dealing with the issue immediately allows you to clear the air before it becomes something more serious.
To learn more about helping your family business be both successful and functional, contact the family business experts at Hubler for Business Families at (612) 375-0640.
The key is to remember this: in family business, it is never just business. Each person involved in the business is a person you see outside of the office on a regular basis. It is human nature to feel emotions over unresolved issues. Since the other party is still someone you must encounter regularly, you cannot simply leave your work problems at work. If you allow an issue to percolate over time, a small speck on the horizon can become a looming problem. The issue can become the center of your relationship outside of the office. This can lead to divorce, family rifts, and an overall unhappy life. Dealing with the issue immediately allows you to clear the air before it becomes something more serious.
To learn more about helping your family business be both successful and functional, contact the family business experts at Hubler for Business Families at (612) 375-0640.
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