Family businesses can lead to great success, but they also come with their own set of unique challenges. Working so closely with family members often results in stressful situations and fights, but there are ways to run a business successfully and smoothly. Here are some of the best secret tips for any business owner looking to build a sustainable family-owned business.
When you’re in business with your family, it can be hard to talk about anything other than work. Family-business leaders give the advice to draw lines and make a rule that there will be no work talk at family gatherings. Work talk should mainly occur at the office, and mixing personal life and business life can get extremely tricky. For a chance at a successful family business, try to avoid talking about work outside of the office as much as possible.
Treat Family Members Fairly
Some business experts advice against going into work with family, but many small businesses would have failed without the dedication and passion that comes with a family-operated business. The key is to treat all members fairly, and only give qualified and deserving family members positions on the team. Fairly does not necessarily mean equally. While you may be worried about hurting feelings, hiring an under-qualified employee simply because they are related to you will lead to numerous issues. If you also hire non-family members as employees, do not treat them any different. You should have the same employee standards for all employees, whether they are family or not.
Within a family business, the idea and decision-making process can be too closed. Open up to outside advisors and other business owners for guidance, to get a different perspective. While your family member may have great ideas, it’s always a great idea to open up to others outside of the business for fresh ideas and creative problem-solving.
Have A Succession Plan
While building a family-owned business is an exciting time for everyone involved, the business will not last if there is no formal exit plan which could mean a succession plan in place. Make sure if you have a succession plan the family member wants the responsibility. If you plan for the succession without their support, you could be surprised if they do not want the job. This plan should provide details as to who will lead and how and when. This is an essential step for a financially stable business, and outside professional advice is crucial when developing a plan.
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