Tips for starting a family business
Ever toyed with the idea of working with family or launching a family business? While family businesses have many great advantages, there are a number of things you will need to keep in mind to ensure your experience is a smooth ride. Running a business is not without its complexities at the best of times, so when you throw family in the mix too, you’ll need to take extra steps to avoid stress, promote harmony and seek advice from a neutral third party. Here are some tips on keeping the peace.
Set boundaries
Mixing business, personal and home life can sometimes produce a precarious dynamic. While it’s easy for family members involved in a business to talk shop 24/7, make every effort to limit business discussions outside of the office.
Seek training
Consider looking into further study on starting a business or advice from someone who has done something similar. Open2Study offer a great free online course, Entrepreneurship and Family Business, which explores and expands on key elements, assumptions and processes that are essential to the success of a business. You’ll finish the course with a good understanding of the commercial world and the strategies that you need to run a successful company.
Communication is key
While problems and differences of opinion are inevitable, it’s a good idea to consider weekly meetings to assess progress, air any differences and resolve disputes.
Set roles and responsibilities
While various family members may be qualified for similar tasks, duties should be divided up. Yes, big decisions can, and should be made together, but a debate over each little move will weigh the family business down. Also, 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 miscommunication, put something in writing that defines compensation, ownership shares, duties and other matters.
Treat family members fairly
Numerous small companies would not have survived without the hard work and energy of dedicated family members. While qualified family members could be great assets to your business, you’ll want to avoid favouritism. Raises, promotions, work schedules, criticism and praise should be evenhanded between family and non-family employees.
Seek outside advice
Ideas and creative thinking can get lost in the chaos of family relationships. Thus, the decision-making process for growing a family business can sometimes be too closed. Seek guidance from someone outside of the business who is not affiliated with any family members – it can be a good way to give the business a reality check.
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