Ensure the success of your family
business by following these simple but useful tips.
Family-owned and operated businesses are
extremely popular in the US. In fact, family businesses
make up 90% of all business enterprises in North America. It also accounts for
about 62% of the total employment in the country.
However, it is sad to note that about 70%
of these businesses do not make it past through the first generation. Only a handful
(approximately 12% and 3%) make it past through the 3rd and 4th
generation, respectively. Is there something that can be done about it? Is
there a way to make a family business successful and increase its chances of
getting way past the first generation?
Thankfully, there is. In fact, there are
several ways to ensure the success of a family-owned and operated business.
Here are some of them.
to Ensure the Success of Your Family Business
fair. Always be fair and treat each person with
respect. Recognize the fact that everyone has his or her own strengths and
talents. Avoid favoritism at all cost and make sure that the same standards apply
to everyone in the company – whether they are family or non-family members.
each partner to be an expert in his or her own department. Divide roles and responsibilities among family members and let everyone
bring their own area of expertise to avoid arguments when problems arise or
when a crucial decision needs to be made.
Communicate. Schedule regular meetings to avoid any confusion, resolve disputes
and monitor the progress of the business.
clear boundaries. Mixing business and family life
is never a good idea. Don’t talk shop outside of the office and don’t let
family relationships get in the way of business decisions. Establish a clear
chain of command and make sure everyone knows their individual roles and
responsibilities to avoid any problems down the line.
provide sympathy jobs. Don’t hire family members
who do not have any aptitude or usable talent to bring to the business. If your
children are thinking about joining you in the business, let them get a taste
of how the business world operates outside of a family setting by allowing them
to work elsewhere first.