Get All Access for $5/mo

5 Tips To Seamlessly Run A Family Business And Flex Growth Working with family can become a dream or a nightmare depending on various factors.

By Arjun Gadre

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Shutterstock

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.

1. Communication:

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.

3. Consultancy:

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.

5. Conflicts:

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.

Arjun Gadre

Owner, Gadre Marine Export Pvt. Ltd.

Business News

Y Combinator Helped Launch Reddit, Airbnb and Dropbox. Here's What I Learned From Its Free Startup School.

The famed startup accelerator offers a free course on building a business — and answers five pressing questions for founders.

Science & Technology

Why We Shouldn't Fear AI in Education (and How to Use It Effectively)

Facing resistance to new technologies in the educational process is nothing new, and AI is no exception. Yet, this powerful tool is set to overcome these challenges and revolutionize education, preparing students and professionals for a future of unparalleled efficiency and personalized learning.

Green Entrepreneur®

6 Ways to Profitably Integrate Eco-Friendly Practices into Your Business

Sustainability efforts can improve operational efficiency, increase customer demand and boost profitability. Here, we highlight six easy ways entrepreneurs and small businesses can capture the financial benefits of sustainability.

Business News

A Former Corporate Lawyer Now Makes Six Figures on YouTube — Here's How She Does It

Here are the secrets to starting and growing a successful YouTube channel, according to a YouTuber with millions of subscribers.

Business Culture

You'll Always Have Anxious Employees if You Don't Follow These 4 Leadership Tactics

Creating a thriving workplace environment hinges on the commitment of company leaders to nurture and inspire their teams.