How to Maintain a Healthy Family Business!

CONTINUITY

FAMILY BUSINESS CONSULTING

US/CANADA: 877-925-5149 INTERNATIONAL: 1-617-500-3110

CONTINUITYFBC.COM

With the right dynamics, some family businesses can be extremely successful. However, when families are dysfunctional and can’t find a rhythm that works, it can be anightmare for all who are involved. Families are torn apart and the business suffers.

Family members offer a level of loyalty, trust, commitment and vested interested in the business’ long-term success that’s not usually expressed by those who are non-family employees. Along side these positive qualities is jealousy,resentment, entitlement, greed and other emotions that can get in the way of sound business judgment when working with family members. When problems arise, and more and more family members become involved, the situation at hand gets progressively worse.

Here are a few critical tips for family businesses who want to maintain a healthy family owned business and sustain strong family relationships, courtesy of James Cassel inan article published on miamiherald.com!

Plan Ahead – It’s a good idea to work with qualified legal and financial advisors to develop appropriate agreements for the business. This will help to keep issues to a minimum and all of your family members out of court.

Communicate – Lack of communication is one of the main reasons most family businesses fail.Communication is a key to success. Family members need to express their issues and concerns and reach a consensus.

Be Picky – Not all family members are a good fit for the business. The term “There’s always a place for you here” is not always one that should be used in the family business world.

Implement Safety Measures- Require all of the same training for all employees and a screening process for new family hires and before giving any promotions.

Think Creatively –You don’t always need to follow the same traditions and business practices as prior family members used to run the business. Often times, young family members have many great new fresh ideas!

Do you think these tips can be applied to your family business? Let us know on our Facebook page, linked HERE!