While the concept driving family business ideas is extremely appealing and come across as perhaps the best channels to take forward your strong familial ties but statistics has a completely different story to tell. Studies and deep research indicate almost 70% of family businesses are not even able to pass on the baton to the next generation and pack up even before that.
That statistics really seem at odds with the obvious advantages that you have in running the business with family members like the fact that no one knows you better than your family or no one will stand with you as steadfastly as your own family. So then, the obvious question is how you can help your family business become successful and begin to yield strong returns?
While one aspect of it involves in keeping the business basics right either it is an independent entrepreneurial idea or one involving your family. The other aspect is about tackling the family related challenges better so that they work as your assets more than the liability that you must drag. A family business entails the same level of professionalism as is expected in any other business.
Here is a quick low-down on 5 ideas that can help you support the family business ideas better and help the business thrive effectively.
1. Accountability Is Key in Family Business
Remember when you start off a business with a third party, each one of you should be always alert and accountable. The same policy needs to be applied to this field too. You must remember that family businesses can only be successful when no members slack off in their effort and are always alert and remain accountable for responsibility allocated to them.
As seen in successful family run businesses, each member is more than usually cautious of the advantages that they can get working with their family and hence is almost extra careful not to misuse it or take unnecessary use of the situation.
2. Give Space to Every Member Involved
Remember that the business arena is not the right platform to show your family based superiority. Every family member associated is an equal stakeholder in the success and therefore requires that same degree of independence and space to give their best shot. While you may branch out eventually, you must be careful not to encroach upon each others space when you start off.
Avoid micromanaging to get a better result from your family business. You guys could be siblings, cousins or parent-child duo or spouses but that does not give you the right to bump into each other’s space continuously. It is crucial to maintain that sanctity, and ensure that each one of you is able to perform effectively without unnecessary interference. You need to approach the business basics with an open mind and look at every aspect in a well thought out game plan that involves everyone. Remember it isn’t a one-man show anymore, and the interest of every family member must be taken into consideration.
3. Don’t Take Office Tension Home
Family businesses often have the advantage of having almost all stakeholders staying under a single roof. But that does not mean you will carry your office work or office stress home. As a practice, ensure that you have barely minimum or absolutely no business related discussion at home.
It is very important to make this division. Not only does it demarcate; it also enables the individual to take time off from the daily hassles of running a business and refresh their mind. It also helps you to discuss family matters and things that are special to you as a family as this really strengthens family bonds. This also helps you to become more effective family unit who are also then a far more proficient business professional than otherwise.
4. Don’t Bring Home To Office Either
Just like the previous point, it is very important to maintain the sanctity and necessity of every place. Just like you should not carry office related stress home, it is also a good idea to keep the home at arm’s length when you are in office.
Whether you had a great party at home or a major fight, it is never conducive to further family business. This kind of conversation can easily distract you and even impact your productivity. So what if everyone you are working with is a family? You must respect office hierarchy and maintain the decorum that is required in the office. In this way, you can also set the right type of example for the other employees in the office who might not be family members and are simply hired hands. If you maintain a too casual approach, other employees might also take advantage of the situation.
5. Get Everything in Writing
Communication can be both a great asset and major problem for the success of your family business. You must understand just like you can easily say something to a family member; the others too could do that to you. Therefore, as a rule, do not rely on word of mouth when setting up the core structure of a family run business. It is imperative that you list out every terms and condition of the entire business plan on pen and paper and make it mandatory for every member to follow it. Thereby you can easily achieve a sense of decorum and discipline in running your family business.
Family businesses can be successful proposition if they are handled effectively. Execution and intent form the key pillars that support these ideas and just because it is a family, you should avoid taking a short cut. Also, you must ensure that every communication channel remains open at all hours and no family member can either get away with too much or too little. Every member is equally responsible for the business, and this accountability becomes the backbone of success experienced in family run businesses.