Tips for striking the right family business practice

The family businesses take up the major portion of businesses of any country's economy, to an extent of 90% in some countries. Managing a family business is not a bad of roses, as it takes a great deal of efforts to keep the relatives together and reconciling them on working together. One needs to keep the dining table separate from the Boardroom table, if one wishes to have a smooth and growing business. If you also run a family business, you certainly can understand the balance of emotion and business opportunities that one is required to make. Mentioned below are some of the efficient tips for family business practice which can aid in facing the challenges in a unique way. Have a look:

 

§  Use the strength of each and every family member

One of the factors which determine the strength of a family business to a great extend is the clearly defined roles and responsibilities. If this is not done with a clear vision, the chances of business going into a failure becomes quite evident. Each and every member has some key traits which can be judiciously used for business. So one needs to ascertain that and grab it for the benefit of family business.

§  Keep family politics away from family business

The paramount rule in family business is to focus on the success of the business regardless if the family politics. The decisions taken in the business should be objective and must have a positive impact on business and never on personal lines. One should behave like a boss and a junior in the office irrespective of the personal relationships one shares. Never overlap the office troubles with the family troubles and vice versa.

§  Don't put the family members on payroll if they do not work in business

The most important family business practice is to compensate a family member only if he/she is making a real contribution to the business. Each and everyone who is compensated by the family business must have a clear cut understanding about job title, job description and compensation. The performances of family members must be reviewed at regular intervals and if someone is not bringing anything positive to the table, it's better to ask them to quit.

§  Understand the generation gap

When it is a family business, there is bound to be a generation gap. There are cases where four generations are working in the same business, hence certain tensions are bound to crop up due to difference of opinions and way of thinking. One needs to understand it and respect each other. The new generation needs to appreciate the power of wisdom which their oldies provide them and old generation can appreciate the new innovative thinking of young guns.