Running A Family Business

The benefits to running a family business are that family members can often be more dedicated and loyal to the success of the business. However problems occur when the interests of family members conflict, there is a lack of competence in particular areas or emotions get in the way of clear thinking.

When it comes to running a family business, there are some key points to take into consideration:

• Communicate effectively and discuss early on to establish what the family wants
• Don’t wait for an event or trigger. Have steps and processes in place to deal with issues as they arise
• Pass on the knowledge from one generation to another
• Involve family members early on so they can understand the business from a young age
• Encourage everyone to share their expectations for the business
• Be aware of the influencing factors (history and generation)
• Be aware of the culture of the business – family businesses can be unorthodox in structure
• Try to be logical, not emotional
• Clearly define the roles each member in the family plays in the business
• Establish family advisory board including independent third party board members

One of the key points to remember is communication. Keep the lines open amongst family so everyone understands the overall goals and objectives. It pays to remember too that family businesses can have non-family members on the management team.