Friday, November 09, 2007

Mind your family business

Working with your family could be a pleasant experience but it brings many responsibilities too.Read on to find out where you must draw the line

Operating a family business can be an exciting way to spend your time on the job and a prosperous way to develop your familial relationships. With the potential for long histories, rich in tradition, successful family businesses thrive because everyone involved enjoys learning and working with relatives with whom they are comfortable. At the same time, there are several challenges associated with family businesses. Family disputes, unbalanced employee treatment and lack of planning for the future are a few common issues. Here is how to handle them well...

Separate family from work
Family business often encourages a stronger commitment to the company. There’s a temptation to work overtime and on weekends, but that isn’t always good for the family unit’s health. Business might come first, but family should always be a strong second. As such, it is important to make regular plans for the family to spend time together away from the office, on vacations or family outings. While your family is away on a trip, work should be the last thing on anyone’s mind.

Treat everyone equally

Treat your family members with the same level of respect that you give to your customers. This also applies to public displays of affection if you’re working with your significant other. You might think it’s cute, but your staff and family members will find professional actions more comfortable than your affectionate ways. Equal treatment also applies to written policies, employee behaviour and hiring procedures. This works best if you start early, by creating clear job descriptions and hiring based on qualifications, not on genes.

Simply let go!
When you’re in charge of a family business, you should be prepared for and respect the decision of anyone and everyone who chooses to move on. If you try to confine them to your business, you risk worsening your personal (and professional) relationship, which might cause more instability to the business than if you let them go.

Don’t abuse power
To prevent the abuse of power and to keep your family relationships solid, you should be positive and constructive in your dealings with family employees. If you need to criticise a family member, make sure that your comments are about his/her job and not personal or about his/her place in the family. Whenever you can, be positive and offer friendly feedback that makes them feel good about the great work that they do for you.

Have a succession plan
To formulate a quality succession strategy, sort out the roles of the company’s new leaders and redefine the management roles. This will give everyone a clear picture of where the business is going and who will be doing what, thus minimising confusion during the transition. Don’t be surprised if roles change and new business positions appear as a result of a succession. From there, figure out an authority structure to deal with problems, and don't forget about the outgoing owners– who will need a plan that provides a financial cushion on the way out.

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