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Family-run businesses are often a thing of extremes – when they’re good they’re great, but when they’re bad, it can be pretty awful. ‘The family’ can either make or break the business and there have been many public examples of where the latter has been the case.
On the one hand, you should have a group of people who are all heavily invested in working together to preserve and enhance a family legacy. But on the other, there’s the emotional side of family politics, entitlement, and subjectivity which can all get in the way of the professional running of a business.
While emotions and politics can factor in any job, there is always more at stake when the family depends on the business and vice versa, plus the added pressure of it being your business to pass on to future generations.
At the same time, your boss could also be your father or mother, sister or brother, so how do you function as a normal family with normal relationships away from the business when the two are so intrinsically linked?
A lot of that is down to how you conduct your affairs within the business, and outside it.
Long-term vision and planning
Running a family business means managing the conflicting demands and desires of those involved, alongside the needs of the business.
That’s why it’s vital to have a clearly defined long-term vision, business plan, strategy, and goals. These can take into account the desires of the different family members and what they are looking to get out of the business. Having a long-term vision for your family business means everyone knows what direction the company is headed in and the part they are expected to play within that.
Freedom of choice
It’s important that family members feel they are free to decide for themselves whether they want to join the business, or indeed leave at any point, and to know that whatever they decide is not going to cause problems or friction in the family. That way, the business is only served by people who want to be there, and arguments within the family are prevented.
Succession planning
Having a plan for succession can help with this, to ensure everyone knows where the business is going and that the future is secure. It’s important that subsequent generations are free to modernise and adapt the business as times change.
Having the overarching vision statement mentioned earlier can provide reassurance that the business will not completely lose its way through the generations.
The best person for the job
It’s also important that people are recruited to the roles that suit them best, not because they are ‘next in line’ or someone’s son or daughter. Everyone in the business should earn their place on merit and experience. Think about implementing job descriptions, performance related pay and equal pay for family and non-family employees. The more professional your business, the easier it will be to identify the boundary between work life and personal life.
Separating business from the personal
It sounds obvious but try and keep business and work issues separate. So, avoid bringing personal issues or conflicts into the workplace and try not to have lengthy discussions about work around the family dinner table. If that proves difficult, it can help to have certain days or evenings of the week where work is strictly off the table. This also means ensuring you are taking enough time off away from the business, and sometimes even each other.
Impartial board members
If things don’t always run smoothly, or there are various character conflicts at play, consider appointing a board which includes independent, non-family members, to add a balanced and objective system to ‘check and challenge’ if needed.
Have fun at work!
Even though it’s important to keep things professional at work, that doesn’t mean you can’t create a desirable culture based on honesty, trust, and reward. It can be easy to forget to reward success and to take achievements for granted when you’re dealing with family members, but it’s important to ensure that everyone enjoys coming to work and success is celebrated – isn’t that what running your own business is all about after all?
For more advice and information, you can also read our previous article on tips for running a business with a spouse, as many of the principles are the same.
If you would like any additional coaching, please contact Juliette Ryley ActionCoach to find out more.
