3 Key Points to a Better Family Business

A family business has its advantages and disadvantages – just like any other business. On one hand, you get to collaborate with family members to build a successful business together. On the other hand, separating work-life from family-life can be very challenging.

 Avoid the struggle of juggling work and family. Just remember these three key points to a better family business:

 1. Keep emotional conflicts out of the office 

Familial conflicts happen. It’s natural. You may have days where you can’t bear the thought of having to collaborate with a family member at work, but it is crucial to put these feelings aside until you are off the clock. 

Even bringing a small quarrel into the workplace can have a huge effect on the atmosphere (and, in turn, on your employees). Your employees don’t deserve to be roped into a personal squabble, and a tense workplace atmosphere will negatively affect everyone’s mood and productivity. This is not going to help your business succeed. 

2.Treat family and staff as equals

It takes some effort to recognize and put aside the fact that you’ll have a closer relationship with family members than you will with work colleagues that you are not related to. Family members also may have expectations that they shouldn’t. You must be careful to use the same criteria when evaluating the skills of staff and family members.

This is not to say that family members can never advance within your business. Don’t, however, promote them when they are not as capable  as someone else would be in handling the responsibilities of the new position. It makes no sense for your business to assign someone to a position that they are unqualified for, family or not. 

 3. Base rewards on performance, not relationships 

It is important to recognize good work from your employees and to reward them appropriately. This standard should remain the same between staff members and family members.

 Again, if someone is incapable of doing the job, they shouldn’t receive undeserved rewards or promotions based on their familial relations alone.

 Building a better family business gives results 

It’s not easy to keep these three key points to a better family business in mind, but it is worth it. Here’s the upside to when you do:

You collaborate with each other better. –  As family you know each other, and your other employees will have more reason to trust your process. It’s much easier (and in most cases a better way) for everyone to collaborate and get along.

The work environment is more relaxed. – Family members realize you are in this together and you are all “rowing the boat in the same direction.” Your other employees will also have fewer reasons to be stressed about internal family conflicts and emotions.

Need help getting there?  Our Partnership and Family Business audit will help you get started.  Download our free audit today and participate in a free 30-minute consultation to get started on the next steps to a better family business.