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Jun 18, 2019 · By following four rules: maintain good governance, identify and develop both family and nonfamily talent; pursue disciplined succession; and preserve family gravity. The last is perhaps the most...
- Build a Family Business That Lasts
The authors explore five aspects of ownership that are...
- What Makes a Family Business Last?
Family firms tend to take a long-term view of investments...
- Build a Family Business That Lasts
Dec 23, 2022 · Are you the proud owner of a family-owned company? From succession planning to company culture, these family business tips and insights, based on stats from SCORE’s latest business infographic, will help you build a roadmap to success and increase the chance of transitioning into the next generation.
- Bridget Weston
- Set Some Boundaries
- Establish Clear and Regular Methods of Communication.
- Divide Roles and Responsibilities.
- Treat It Like A Business.
- Recognize The Advantages of Family Ownership.
- Treat Family Members fairly.
- Put Business Relationships in Writing.
- Don’T Provide “Sympathy” Jobs For Family members.
- Draw Clear Management lines.
- Seek Outside Advice.
It’s easy for family members involved in a business to talk shop 24/7. But mixing business, personal and home life will eventually produce a volatile brew. Limit business discussions outside of the office. That’s not always possible, but at least save them for an appropriate time — not at a family wedding or funeral, for example.
Problems and differences of opinion are inevitable. Maybe you see them already. Consider weekly meetings to assess progress, air any differences and resolve disputes.
While various relatives may be qualified for similar tasks, duties should be divvied up to avoid conflicts. Big decisions can be made together, but a debate over each little move will bog the family business down.
A common pitfall in a family business is placing too much emphasis on “family” and not enough on “business.” The characteristics of a healthy business may not always be compatible with family harmony, so be ready to face those situations when they arise.
Family-owned businesses offer unique benefits. One is access to human capital in the form of other family members. This can be a key to survival, as family members can provide low-cost or no-cost labor, or emergency loans. Family businesses run by trusted relatives can also avoid special accounting systems, policy manuals and legal documents.
While some experts advise against hiring relatives at all, that sacrifices one of the great benefits of a family business. Countless small family owned companies would never have survived without the hard work and energy of dedicated family members. Qualified family members can be a great asset to your business. But avoid favoritism. Pay scales, pr...
It’s easy for family members to be drawn into a business startup without a plan for what they will get out of the business relationship. To avoid hard feelings or miscommunication, put something in writing that defines compensation, ownership shares, duties and other matters.
Avoid becoming the employer of last resort for your kids, cousins or other relatives. Employment in family businesses should be based on what skills or knowledge they can bring to the business.
Family members who often have a present or presumed future ownership stake in family businesses have a tendency to reprimand employees who don’t report to them. This leads to resentment by employees.
The decision-making process for growing a family business can sometimes be too closed. Fresh ideas and creative thinkingcan get lost in the tangled web of family relationships. Seeking guidance from outside advisors who are not affiliated with any family members can be a good way to give the business a reality check.
- The Sloan Brothers
From good communication to good governance, we’ve rounded up 8 tips for family-owned business success.
Jan 1, 2010 · To be successful as both the company and the family grow, a family business must meet two intertwined challenges: achieving strong business performance and keeping the family committed to and capable of carrying on as the owner.
