5 Tips to Run a Successful Family Business

You and your family have decided to open up your own pizza place. For a while, your little family business is booming. That is until the fighting began.

Your uncle decided to bring up issues concerning the business at your daughter’s wedding. Speaking of your daughter, you can’t get anyone in the third generation of kids to put anything toward the business.

Everything turned into a big mess so, you made the hard decision to close up shop. This exact scenario happens to about 70% of all family businesses.

Check out this guide to learn how to stop your next shop from failing.

  • Set Clear Boundaries

To stop business-related fights from breaking out, you’ve got to draw a few hard lines. The biggest one is to not bring up company concerns at the family BBQ. Keep it in the office.

On the flip side of this, keep family conflicts out of the workplace. If a family member tries to get you to hire their child, you don’t have to if you know they can’t handle the workload.

Hand out different responsibilities and if one of your family employees can’t handle it or refuses to work, fire them like you would any other employee. You’re a manager, after all.

  • Hire from Outside

There is a world of people out there. All of them have different talents and abilities they can bring to a job. So, you’ll be hurting yourself if you only recruit from the inside.

Hire out of the family and give them equal opportunity to rise to leadership positions if they prove themselves. Treat them like you would treat your family.

  • Put Everything in Writing

Don’t drag family members into the business without giving them a clear explanation of what they’ll get out of it. From company shares to business duties, put everything in writing. If you don’t, you risk miscommunication which, can and will cause the family business to fail.

  • Make it Optional

If your daughter wants to go to college and do her own thing instead of joining the local family-owned business, let her. The last thing you want to do is force a person to take on a job they don’t want.

As much as they try, they won’t be able to put their heart into it like a person who needs or wants the job.

  • Plan Ahead

The reason why most family businesses don’t make it to the second generation is that owners don’t begin family business succession planning soon enough. Start deciding who will take on the company long before you retire.

Pick out some of your dedicated staff members that aren’t family and begin training them for leadership positions.

Make Your Family Business Flourish

There’s nothing like creating a family business with those closest to you to bring everyone together. It can also rip you all apart if you don’t set boundaries and plan.

Consider hiring outside of the family and don’t force anyone to join up if they don’t want to. Follow these tips and we promise that your company will flourish.

Are you looking for more ways to succeed? Check out our blog daily for all the latest business tips and tricks.