Surviving & Managing a Family Business

Surviving & Managing a Family Business

Some people say that it is better to have a family member become part of a business because he/she is family. It may be true to some point because somehow, we can entrust important matters to a parent or sibling. On the other hand, some entrepreneurs would rather hire other people to work with them in building a business primarily because they are “teachable” and somehow “fearful” of their boss. Make sense?

Definitely, having your own business has a lot of advantages. Choosing people to work for you depends on where you are comfortable. So, some may prefer taking in members of their family because, for them, it is easier to communicate. Time may not be so much of a problem and that each member may feel more dedicated since it’s a family business. But how difficult can it be to be working with family members? It’s a riot sometimes, but, just like any kind of business, there are squabbles among one another.

Starting a Family Business

Building a business now is the best way on how you can have enjoyable retirement years. The young generation is now more inclined building their stream of incomes through various channels because they are far more ambitious. Sustaining a business is hard work. Knowing which people to choose can be a challenge, therefore, some startups would let family members help out until the right people come along. Although, there are businesses which have been initially planned to be purely managed by the family themselves. If you plan to start your own family business, here are some realizations to help you have a better look at how your business will be affected by the presence of your family.

You are more confident that the loyalty of your family will be 100% because all of you have the best interest in the business. Additionally, a family member may have more room to adjust their schedule. Since some may still be living in one roof, discussions can be done even at home. It makes everyone more comfortable speaking their minds to one another.

While those mentioned above may sound like a perfect set-up, it is impossible not to get into some misunderstandings every now and then. Just like working with other people, a family member may have a different opinion, which may create some friction between members. It is rather difficult not to make the discussion personal since personal issues may just be brought up. And when this happens, relationships do get affected. Another one possible conflict is when a particular family member would promote someone without talking to the rest of the family. Favoritism may hamper relationships among family member, too. There may be instances wherein a family member may favor an employee which may not be based on actual performance. And therefore, other family members may see that the chosen employee may not be capable of being in a higher position.

The different views and opinions among family members is one of the factors why a family business does not survive.

There are so many scenarios that family members would often discuss. And to hurt one another’s feelings is just unavoidable. Having said all these, this should not hinder you from letting your sibling/s to help you with the business that you have in mind.

How To Strengthen The Family Business and Relationships

A huge challenge, indeed! But, we all need to have the required discipline and adhere to a common rule so that the business runs the way it should be and eventually grow as years go by. Here are ways on how to make a successful family business:

1. Never rely on the verbal agreement because, over time, some members may just forget what you have agreed upon. Not remembering exactly what you have talked about may start a huge disagreement. Therefore, consider making a written by-law or board resolution that will indicate the role of each member.

2. Family members may tend to get into discussions which may lead to personal attacks. Avoid doing so if you want your business to succeed. Some form of limitations or boundaries should be set so that the discussion remains all about the business only. Family business management.

3. Everyone should be treated equally. Family members should not be holding all the top positions because there should also be a basis on which department a family member should be working. Therefore, to side a family member even if he has done something wrong is truly uncalled for. Make these family members report to a non-relative employee so that the employee would have a more objective opinion about him/her. This is an effective way wherein any family member is able to work fairly and in an impartial environment allowing them room for growth. Part of family business management.

4. Learn to adopt a work-life balance. You may see your siblings every day at work. And of course, ideally, discussions about work ensues most of the time. However, never forget that you are also family, thus you also need to spend quality time with one another like having lunch breaks together or going on an outing on a weekend. Family Business Management.

There truly is nothing perfect in this world, no matter how you think you have carefully made your move. The decision to let a family member join you to run your business is a huge step to make and a risk you should take. Should you be afraid that they may just not behave the way they should be? Then choose another option. But, while you are starting and you think that any member of your family can help you, then go for it. You will never know until you have tried.

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You may contact Armando “Butz” Bartolome for questions and more information.

By email: [email protected]

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