Every family has its share of issues. Combine the emotional elements of family relationships with the demands of running a business and it's no surprise that turmoil is a common outcome in family businesses. However, with the right approach, you can help keep your family business free from explosive situations. A well-managed family business boasts numerous benefits, including:
Outline job qualifications and requirements
Giving a family member a job simply because they're a relative is sure to create problems within your organization. Without proper qualifications, family employees are doomed to fail, creating tension and frustration. Avoid trouble by insisting that family members be qualified for their jobs with the proper education, training and experience. And hold them accountable for their job performance.
I recommend: The
Job Results Management Institute provides forms that can help you pinpoint job qualifications, conduct performance reviews and measure performance. Find
performance measurement resources from the Zigon Performance Group.
Define roles
Snuff turmoil by giving family workers clearly defined roles within the company. By outlining the specific parameters of each person's job, your family employees will understand the scope of their responsibilities and will be less likely to tread on each other's toes.
I recommend: SBA.gov provides tips on how to write a great job description. Get a look at some common duties included in various job descriptions in
Monster.com's job profiles.
Compensate fairly
Just because someone is family doesn't mean they should be paid an exorbitant salary. This can lead to tension among the ranks of your non-family employees.
I recommend: Use Salary.com's free
Salary Wizard to find average salaries, including bonuses, for dozens of job categories.
Job valuation reports that give you a complete look at salaries, bonuses and raises for a variety of positions are also available for a fee from Salary.com.
Schedule family meetings and retreats
To make sure that all family members are on the same page in terms of business strategies, operations and future plans, hold regular family meetings. Consider an annual retreat to encourage family bonding, which plays an important role in the ongoing success of a family firm.
I recommend: The
Family Business Consulting Group, authors of
Family Meetings: How to Build a Stronger Family and a Stronger Business, offers family business meeting resources to ensure that you get the most out of your meetings.
Select an advisor or consultant
Since family enterprises face unique challenges, it may be beneficial to hire a family business expert as an advisor or consultant. Outside advisors can assist you in making sound business decisions while taking into account the emotions and personal relationships involved in a family endeavor.
I recommend: The
Family Business Consulting Group outlines the benefits of working with a consultant. Review questions to ask a potential advisor at the
Family Firm Institute, which also offers links to consultants who specialize in a host of
family business topics.
Create a succession plan
A succession plan can help ensure the smooth transition of your business to the next generation. By choosing a successor and communicating your succession plans with all family workers, you can avoid power struggles.
I recommend: SuccessFactors.com offers
success management software and succession planning
Webinars. Familiarize yourself with the documents necessary for transferring the business, such as
buy-sell agreements.