Runnning a Multi-Family Business

"When it comes to making major decisions or implementing new ideas at New England Coffee, our executive team-five of us are members of the [owning] families, and two are nonfamily members-talks it through. We look at the issues as a team, decide what's best for the company and then reach a consensus," says Kaloyanides.

Although each two-family business has its own unique and often idiosyncratic way of making decisions and resolving conflicts, Aronoff recommends that two-family businesses establish a board of outside advisors. "It can be extremely helpful in clarifying positions and giving guidance on potentially divisive issues," he says. "And it can weigh in when there's a stalemate." Retreats and forum meetings, which encourage the participation of members from both families, provide the opportunity to develop good business policies, enhance communication and foster goodwill.

This article was originally published in the June 2000 print edition of Entrepreneur with the headline: Team Effort?.