Setting up a business with your family can be both a daunting and exciting task. Working with the people you grew up with should be a fantastic experience but the stresses and strains can take their toll on relationships pretty fast.
Whilst there are lots of successful family businesses, many don’t even make it through the first generation of members. This guide offers some helpful tips on how to set up your family business without the drama.
Have Everyone Bring Something To The Table
When you decide to set up a business with family members, you should be considering what everyone is bringing to the venture. No matter what industry you’re working in, you’ll need each person to take on their own area of expertise if you want the business to work.
Doing this creates a balanced business relationship and helps to prevent arguments when issues arise.
Talk About Your Exit Strategy
Unfortunately, not all businesses take off successfully and if that happens, you’ll need a solid plan on where to go next. Too many families put everything they have into a business, without actually discussing the possibility of failure. Burying your head in the sand over this matter could not only leave you bankrupt, it could also destroy your relationships.
By creating a good exit strategy and not being completely reliant on its success, you’ll make intelligent business decisions, rather than desperate panic filled ones.
Set Boundaries And Know Your Goal
You might be working with your family but that doesn’t mean you should let this change the way you do your job. By setting defined roles and boundaries, each person in the family business can organise their own area and operate the business as if it were any other.
Although specific boundaries and roles are important, you still need to be able to work collectively for the business. If everyone is aware of the business goal and understands it, you can work collectively whilst still maintaining your own designated role.
Develop Respect For Each Other’s Capabilities
Problems start to arise in family businesses when one member believes that another doesn’t hold much talent. This issue is quite common in family run businesses and a great deal of effort should be made to respect one and others qualities.
When you’re running a business that everyone has a stake in, you have to make the effort to see everyone as an equal. There’s a difference between running a family business and having a family member work for you and once you understand this difference, you’ll be able to create a pleasant and harmonious working atmosphere.