A Few Helpful Tips for Avoiding Conflict in a Family Business and Keeping Your Goals on Track

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            Is the stress of working in a family business troubling you? Are you looking for some expert advice to help handle it?  Working in business is hard enough but throw a couple family members in the mix and it can get frustrating, so we’ve assembled a list of excellent family business tips to help guide you through it.

            Family businesses face all the same challenges that the average non-family business deals with, but they also have a few added issues that arise due to family relationships.  Questions like “Which family member holds the most power?” “Who is the primary stakeholder?” “Who is first in line to take over?” and, “Who makes more money?” often arise and create uncomfortable, challenging situations. 

Here are a few helpful tips for avoiding conflict in a family business and keeping goals on track, courtesy of gaebler.com. 

Communicate Early and Often

The best tool for keeping a family business focused on business is good communication.

Good communication avoids unpleasant surprises and can minimize the damage on potential family business crises by addressing problems sooner rather than later.

 

Take the time to ensure that good communication channels between family members are in place. It's a smart idea to conduct family-only business meetings at least twice a month. A family business meeting allows family members get together to discuss how the business is doing. Each family member can discuss their areas of responsibility.

Don't Make Working at the Family Business Mandatory

It's wise not to force a family member to join the family business. Let them know that it's an option but encourage them to consider other options.

If a family member gets experience somewhere else and then joins the family business later, that's a good thing. They will bring new ideas and fresh thinking – avoiding the insular thinking that often plagues family businesses and ultimately leads to their downfall.

Nip Family Business Problems in the Bud

When issues arise between family members, address them quickly.

If a dispute is not resolved early, it can turn into a much bigger problem. Be on the lookout for hostility or jealousy between family members, and deal with such issues directly as they arise.

Don't Take Your Work Home and Vice Versa

It's smart to distinguish between family discussions and business discussions and keep those conversations separate.

Don't have business meetings at the house, and don't have family meetings at the business.

Mixing the two together all the time is a recipe for disaster. The business, the family or both may fail as a result.

Hold Family Members Accountable for Results

In a family, the standard is often to forgive a family member when they make a mistake. In contrast, mistakes in business are not easily forgiven.

Accordingly, a family business must lay down clear guidelines: in the business, we are going to hold you accountable for your actions, just as we hold all of our employees accountable for their actions.

Every family member should have a detailed job description that outlines what they are expected to contribute to the business. Measure performance against pre-defined metrics so there is no ambiguity on whether desired results were achieved.

Treat Family Members and Non-Family Members Equally

If family members get preferential treatment, non-family members will lose their motivation to help grow the business.

Smart family businesses don't flaunt their ownership by giving family members perks that others don't get.

Do whatever it takes to make non-family members feel that they have the same opportunities as family members. Otherwise, expect your family-owned business to deliver mediocre results and lose market share to competitors.

If you can't treat non-family members equally in some area – for example, maybe they can't have stock ownership like family members do – make up for it in some other way.

Ask a Family Business Expert for Help

When in doubt, ask for help.

Family business consultants are well trained in dealing with issues that are unique to family businesses. They will provide you with advice on dealing with complex family business challenges. For more information on family business consulting, visit our website at ContinuityFBC.com.