subject: Making A Family Business Can Be A Huge Success [print this page] There can be quick success or quick failure in any business venture, including starting up a family owned or family involved company. As a business owner, there are many factors to consider when you are piecing together the workings of a family business. Having family members as employees can bring success and can be very rewarding, but family owned business success is based on a few key factors.
Business first, family second.
The first tip for running a family business is not to give responsibilities to family members who are not qualified to handle them. Business is business, but some business owners who are trying to run a family business may feel pressured to provide jobs where there is not enough knowledge or experience to justify giving a family member that position. Doing so, in spite of these issues can end up hurting the business in the long run. Be cautious when choose family members for specific jobs.
Outline specific job descriptions.
When a normal business hires a new employee, there is always a concise list of job requirements, job duties, responsibilities and tasks. The same should apply to someone beginning a family business. A family company can easily become "too many cooks in the kitchen" if family members are not clear on their expected job duties. When every role in the business is explained and detailed for family members, business success is more likely to be achieved.
Set reasonable wages.
generally, in a family setting we are more comfortable than we might be in a regular work setting. For that reason it might be easy to decide to either overpay or undercut a family member on their pay. When you are deciding on appropriate wages, be reasonable. Do not think if your employee as a family member. See them as an employee - deserving the pay that any other person in this specific position would get. If you need help in making a decision on pay, do some research about what similar business, not family owned, are paying their employees for the same work load. One of the most important things a budding small business or family business can do is compare pay levels to that or other agencies in the same field.
Hold staff meetings often.
Staff meeting are great for the morale of family members. They also provide an opportunity to discuss important business matters and goals. Do not let the fact that you interact with family members almost every day inhibit your desire to hold staff meetings. They are critical to the success of every family business because they keep workers informed and on task.
Establish ground rules.
When family knows what is appropriate and not appropriate in the workplace vs. home, and what they are expected to be doing while they are on the clock, business runs much smoother. Setting some ground rules for your business helps maintain strong structure,and can help family member employees avoid conflict and misunderstandings.
Family is family, Business is business.
One of the biggest obstacles for family business success is that the lines between family and business are easily blurred. In order to provide business services that people take seriously and to establish success in the business market, your family business needs to be more business and less family. Personal issues need to be left at home, and never brought into the workplace. Keeping the above tips in mind, starting or becoming a part of a family business can be very rewarding.
