Did you know that family owned businesses account for a quarter of the UK GDP and provide 9.4m jobs? It’s a very important sector and one I deal with on a daily basis. I thought I’d share with you this month a few tips for running one successfully.
- Mixing business, personal and home life can lead to conflict that is detrimental to business success so set boundaries to limit business discussions outside working hours.
- Establish regular business meetings where personal and family matters are set aside. A strict agenda is important in achieving productive meetings. I am often involved as a third party consultant to facilitate and Chair such meetings.
- Don’t provide ‘sympathy’ jobs for family members. It is important that each member of the family adds value to the business and works at the right level.
- Define clear management reporting lines in the business and ensure that these are adhered to. I see many instances where family members feel that they can instruct employees who do not report to them.
- Each family member’s role should be clearly defined and put in writing, such as an employment contract, and dealt with like any other business relationship.
- I always think its better that family members who are looking to join the business have suitable outside experience first. This helps them to gain valuable knowledge of how business works and can bring new insights and ideas when they join.
- Be open-minded. Family businesses at times can be too closed and seeking outside advice can help to bring fresh ideas and facilitate creative thinking. Open communication can help the family resolve any issues Outside facilitators, such as myself, can also help to make the working relationships of family members more productive.
- Treat family members fairly! They tend to have an affiliation and affection for the business. This means that they have an energy and enthusiasm for the success of the business that previous generations have spent years building. It is important, though, to ensure that there is no favouritism. Pay levels, progression, expectations, criticism and praise should be even-handed across family and non-family employees.
- Understand the advantages of family ownership and use them as a positive in marketing. Customers are very often drawn to using family businesses because of their culture and togetherness.
- The top priority is to ensure that the business is functioning correctly and growing. If you don’t take care of the business, the business can’t take care of the family!
Written by Kevin Begley for the South Warrington News.
