Here Are Tips to Start a Successful Family Business

Family-owned businesses account for two-thirds of all businesses globally, making them important for job creation and economic growth.

As a matter of fact, the biggest companies globally, including Ford, Tyson, BMW, and Wal-Mart, are all family-owned businesses.

Although family-owned businesses are a major economic driver, just 13% last into the 3rd generation, and only 3.4% make it to the 4th generation. Some, like Evolved, LLC, have shared the secret to this success. Among the secrets shared include the following:

1.      Seek Advice

Among the greatest challenges most family-owned businesses face is that development and ideas can be affected by relationships in the family. Plus, it might be hard to separate family and work life. That is why the key to success is to seek outside advice.

This advice will help in the development of family-owned businesses. Looking outside your family for solid mentorship is vital because your family will always be family. Outside advice should offer an unbiased opinion. This means that family dynamic doesn’t affect the advice you get.

2.      Hire the Best Accountant

Working in, or starting, a family business comes with a series of advantages, such as flexibility, loyalty, and values. Like other businesses, family-owned businesses have their own requirements and set of challenges. They also need their financial needs taken care of so as to run successfully and smoothly.

If none of your family members are a professional in accounting, bookkeeping, and administration, the business may face a lot of roadblocks. Handling it yourself without accounting skills consumes more time and risks making human errors.

For that reason, accounting services for small businesses will come in handy. Qualified accountants are skilled and well-trained to provide quality accounting services for every business, including family-owned businesses.

3.      Define the Role of All Family Members

All the family members in the business should have a defined role with set responsibilities and duties. Choose roles according to background, skills, and weaknesses.

Having a hierarchy of positions is also important to ensure that every individual knows who they should report to. This will help reduce conflicts.

4.      Treat Every Family Member Fairly

Although some professionals advise against hiring family members, this sacrifices the great benefits that come with working with relatives. Many small family-owned businesses would never have survived without the energy and hard work of dedicated relatives.

But always avoid favoritism. Promotions, praise, criticism, pay scales, and work schedules must be even-handed between non-family and family workers. Don’t set standards lower or higher for family members than for other workers.

5.      Maintain Constant Communication

Communication is vital for every relationship, whether it is business or family. You may assume that your family knows you very well, finding it unnecessary to talk about expectations and make them understand the project’s nature.

However, if you want this family-business relationship to work, stop assuming and start to communicate openly and clearly as you do with other people who aren’t family.

Final Touches

You must have a connected family to run a successful business. These days, family members are more global and mobile. But this is something you can always handle with constant and effective communication.

Comments are closed.