Running a Family Business
Family businesses are often the most interesting forms of businesses. This is because of the bond it creates not only within the family but with the business. Running a family business at times can be quite challenging because of the little intricacies involved. Most at times, many people do not know where to draw the line between business matters and family affairs. As such, here are some tips that will help you in successfully running a family business.
The line between the business and the family is sometimes faint and unseen. Under such times, family may interfere with business operations. There are times when business money has been borrowed or used for family purposes because there is no boundary between the family and the business. For this reason, if you are ever going to succeed in running a family business, you need to set clear boundaries between the business and the family matters. When this is done, you prevent family matters from interfering with business operations.
Establish Communication Channels with family
Even though the family runs the business, there will be many instances where everyone feels his thoughts are the best in running the business. This is because all the family members feel that they own the business. For this reason, try as much as possible to establish the channels through which communication is done. Let there be time for talking and agreement as a family on the goals and objectives of the business and what needs to be done.
Establish Hierarchy of leadership
Just the fact that everybody is involved in the operations of the business may lead to a misconception among the family members that everybody is a boss in the business and can do as he pleases. For instance, a family member indirectly involved with the operations may come and fire your best employee if no leadership hierarchy is set. For this reason, let the family know that as much as they all own the business, only one person can run the business and make decisions. Remember that when there are many managers managing the same business as the boss, there will be so much confusion that the business is not likely to last for long.
Treat it as a Business
Whether it is a partnership or a sole proprietorship, you should treat the family business as business. This means that even if the employee is a family member and he is not performing, he is liable to sanctions or dismissals like any other employee. Never offer sympathy jobs to family members who are inexperienced in management or business operations as this is placing the business at risk. Also, ensure that everyone including family members working in the business is compensated for his skills and talents.
Family Businesses are Worth Having
It is worth getting involved in a family business because of the bond it will create among family members and the talent it will nurture in upcoming members on the need to be independent. Running a family business can also be financially rewarding when properly managed. Why not start your own family business today?