The world is full of examples showing how family businesses went successful. If we look at Ford, the company is 115 years old. It is run by 4th and 5th generations with having a total of 40% of the voting power.
The successful family businesses in the world suggest that business and family can be co-mingled. Mixing both family and business can require additional responsibility and insight.
Researchers say that only skills and abilities determine what family and non-family members should be considered and allowed to work and in what role. This issue is mostly avoided in businesses because of emotional bonds.
Dwayne Rettinger an Executive Financial Consultant with Investors Group Financial Services Inc., has experience of over a decade of dealing with clients to make fair and sound decisions. He has great experience and sheds some light on insights and solutions in the development of family business leadership.
Table of Contents
1. Not Every Member of a Family is Fit
This key is very important to remember especially when doing succession planning. Appointing family members in your business just because of an emotional bond with them can pose issues later. Failure to address issues of family members or choose to avoid them willingly leads to many issues such as decreased revenue, productivity issues, and employee turnover. This is why it is very important to keep your business away from your emotional bonds. Make a limit line between family’s love and the success of your business.
2. Expect the Unexpected
There is a dire need for a strategy for planned and unplanned situations to ensure an even move. Make a vision of your company and who can achieve it clear. When a strategic plan is clear, it makes businesses know their purpose, discover forthcoming opportunities, do critical thinking and anticipate problems, and make business competent and better.
3. Conflict and Communication
It is obvious that in family businesses conflicts and communication gaps arise and they cannot be avoided at any cost. It is important to keep your family united and professional when doing business. It is important to hold a meeting every day. Resolve conflicts with dialogues.
- Bring together all the members involved in a conflict.
- Identify the conflict and be open about it. Talk about the conflict in such a way that no one gets blamed or judged.
- Without judgment, listen to all the solutions.
- Discuss solutions with everyone with their effectiveness and outcomes.
- Choose the one which suits the best to everyone and make a strategy to carry it out.
- Make a schedule to asset the solution.
4. Respect the Hierarchy
The boundaries between family and business should be made clear. Not everyone is the boss. Everyone should contribute and act according to the role given to them.
Critical feedback from family members should not affect personally, establish professional norms and expect that makes the environment of business better and help it succeed.
Summing Up
Family businesses can get tougher at times but Dwayne Rettinger investors group provides the best of solutions and strategies for all the insights. If any insight strikes a chord with you, contact us and we’ll be at your services.
