The term “family business” covers a wide range of models. It can be a big organization or a small shop run by father-son duo in corner of the street, and everything else in between. The working relationships can differ from husband-wife team, parent-child collaboration to partnerships with your siblings and friends. Working with family can become a dream or a nightmare depending on various factors. So, to foresee it shouldn’t become the latter one, here are five tips which used can help you running a family business successfully.
Clear communication is the key to good relationships. In family businesses, there are factors that make communication more complicated and thus, it take a little more effort compare to any other business. Be clear from the beginning. Don’t leave things in ambiguity just because the person you are working with is known. Drop the assumptions and communicate clearly and openly, as you would have done with non-family business partners.
2. Formalized business relationship:
Putting things on a paper is a must. Despite the fact how strong bond you share with your partner, treat the relationship professionally and have things in written from partnership agreement to any other important papers. This further helps in running a business in a true manner and works in interest of all involved parties.
As family based businesses becomes extremely sensitive and biased at times and this further becomes all more critical when you have to take a call in expansion. In that case, never ever hesitate to consult an external consultant who can offer you a whole new perspective without getting biased. This will push you in the right direction and helps you to do the right thing for your business.
4. Selection of right people:
You can’t put anyone on a higher authority just because he/she belongs to your family. Your business should be based on performance, not personal references. You cannot go wrong here by being biased. Be sure every position is filled by the best person you could have on board, however being someone trustworthy in the family with right credentials can hold the position right too.
Conflicts are part of any business and it naturally arises as people with different personality and ideologies work together on board. One should be dealing with conflicts cautiously especially when it comes to family businesses as it may have adverse impact on personal relationships if not dealt in a smart way. One can build another business or make more money, but once you have lost the relation, it’s a human loss and a damage which can’t be repairable.