Rules in Managing a Family Business
Managing a family business may not be easy because you are dealing with people who are part of your closest circle. Sometimes, it is hard to deal with the pressure inside the business because your relationship with the family members may be affected. Conflicts commonly arise inside a family business especially when there is an informal management. The type of management where there are no formal boundaries is very common in family business. This is helpful in terms of transparency but sometimes it is also causing conflicts. The conflict does not only affect the performance of the affected party but also the relationship of the family members. This is the reason why there should be some rules that should be followed when managing a family business.
In order for you to run a family business successfully without causing pressure or stress that will affect your personal relationship with the members, here are the 5 rules that you should consider:
5. Do Not Mix Family Decisions to Business Decisions. One of the mistakes that people often commit when making decisions inside the family business is unknowingly adding family matters. If you have a company car, do not allow a member to use it for personal matters just because they are part of your family. You should make everyone understand that business matters should not be combined to matters that are related to personal use. This should be done in order to make sure that everything is in a smooth flow inside the family business.
4. Create Healthy Boundaries Between the Business and the Family. When you are in the office or you are doing your job, you have to look for put away all family matters and be professional inside the workplace. This is the best way for you to focus on something that can make the business successful. On the other hand, you should try to put business away from your mind when you are on vacation. Try to leave the matters in the office when you go home and share dinner with your family.
3. Be Transparent, Let Other Employees Know about Family Members in the Company. It is very important for you to make other employees know that you have family members whoa re working in the company. This is not to let them know that you will be giving more favor for the family members but to make it clear that you are up to transparency.
2. Give Rewards and Sanctions According to Performance. Professionalism would speak about how you should make it a point to give punishments and rewards according to a family member’s performance at work. The treatment for your family members and other employees should be equal.
1. Give Clear Responsibilities to Each Member. If you are going to let your family members work, you have to be clear about the responsibilities that they have to take. With this, you have to make sure that everyone is doing the job that they are expected to do.
Managing a family business may not be that easy but you will always find a way to make everything work. You just have to keep in mind that you are not only dealing with the money and the obligations that are supposed to be given. What you are dealing with in this type of set up is your relationship with your family. You need to make sure that the work and the business will not be getting in your relationship as a family. With this, you have to make sure that you are following the different rules that are very helpful in maintaining a balance between your family relationship and your business. You have to make sure that the business is not compromised because you need to maintain a good relationship with your family members inside the workplace. This may not sound easy but it is certainly workable.