Family business: rules and pitfalls

Attractive in many ways, the family business is fraught with many pitfalls, which are easy to trip over those who are just starting to do business with relatives. to explore this question and ready to help you make entrepreneurship profitable and safe for the family.

The rules of the family business from
Define the rules

The main mistake of the family business – the expectation that all will default. Everyone should understand without words, but when someone does not what the other expects, start conflicts. Together and with a cool head define the rules of your business: what is your channel of communication (“I wrote to you on mail!” “A call couldn’t you?!”), how often do you gather and discuss current Affairs etc.

Separate work time from rest

Working together with relatives, it is very easy to slip into work non-stop. For Breakfast, lunch and dinner, in bed, in the office and in the kitchen you will discuss new supplies, recruitment and Bank transfers.

It happens to everyone, and the best thing is to agree on the boundaries of working time that can not be broken in any case.

Clearly define responsibilities, positions

The situation when “all” or “nobody does anything” is also not rare for a family business. Even if not, someone may feel that way.

The basis of any well-functioning business – a clear hierarchical system with a hand-painted job descriptions. This allows you to make the business more “work” and less “family.” Thus, the person has signing authority and independent decision-making only if all this was agreed to, and no one will be offended or argue that it had not been consulted.

In addition, it is important to determine the main. If all the major, it is not a family business, and the chaos.

Adjust financial flows

Who bears the financial responsibility who has signing authority, who is the contact person for the Bank. What is your salary? Who and on what conditions can take money out of the business? To what extent?

And other matters connected with money, needs to be resolved. Otherwise illegally taken money from the cash register or other financial liberties will create distrust in the team and will ruin the business sooner or later.

Attach all agreements documented

The above-mentioned hierarchical structure, financial agreements, agreements between employees-relatives need to be fixed in writing. If you don’t want to tell them a third, a disinterested person, then you should at least write it all down. Otherwise, the types of conversations someone said the 6th day of the finish, and heard someone 3, someone went on vacation and thought that these dates will not count against him, etc., will disrupt the work of the business.

Do not turn on the relatives

It is believed that the family business should only work related. And even if the daughter is your second cousin finished at three accounting College, it would still need to take on the job. Experts say that it is a failed approach.

To ensure that the business was family, enough of the leadership was a family (at least 51% of assets), and the rest of the work to professionals, even if they are not relatives.

It is worth remembering that the family business is a big challenge for family and relationships. After all the money I put everything in its place. To lead the family business, you will need to work twice as much of himself and of his family. Because at least the boring of the worker can always be fired, and if a stimulus was relative, then it will have to endure not only at work but at home.

Still, with the right approach, family business is a great thing. After all, the main resources remain within the family, you do not obey and do not pay money to any third person because he guides, the next generations will always be the ground beneath your feet. However it is not necessary to impose it, because it just also was the cause of discord in many families.

The 10 commandments of family business that you want to repeat yourself constantly

  • Business – General. Therefore, strive for understanding, not personal ambitions. To explain, to ask, not order and blaming.
  • Family business – a commercial enterprise, so professionalism above family ties.
  • Goals of the business – higher than a discussion of personalities.
  • The man in the family business – not forever. People change, their goals. This is normal, it was and always will be, respect the law.
  • The external adviser is very necessary for the business with the family. An unbiased view from the top will help to find answers to many questions.
  • In a conflict situation, first determine whether this question is more for the family or for business.
  • Constantly ask yourself how I’d(a) himself, if this man was just my friend, not a relative? This will help you to develop the right response.
  • Learn to admit their mistakes, and finish on time and leave, if not impossible. The family is too high a price for any business.
  • The authority of the Director – is very important. In many firms the work is done only because the chief has authority. If in a family business it does not, then the business was under threat.
  • Enterprise money and your money are two different things. All financial issues must be negotiated to the penny.

Author –Love Segalove, site

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