When more than one family members get involved in running a business, management of the family owned business poses more challenges than those arising only from running the business. This is because of the unavoidable friction and conflicts between the family members on the matters related to business. The reason for these conflicts is due to the overlap of the following three:
1) Family’s internal issues
2) Business ownership equations
3) Business management challenges
The complex interrelationship of the above three issues makes the balancing acts very crucial and challenging. So, a family business requires careful managing of the three priorities. The founders / owners must be clear that conscious efforts are required to manage them.
Proper management of a family business requires understanding and working on the following:
- Finding the causes of conflicts and taking steps for preventing and solving them
- Regulating the family and business management by implementing certain policies, practices and guidelines
- Avoiding confusion and conflict by laying down clear policies and guidelines for the involvement of family members as employees in the business
- Attending succession planning by giving it a priority and avoiding mistakes in selecting and training the successor
- Balancing the family and the business
We will look into each of the above in the following pages.
(Expert advice to GROW your business wherever you are, whenever you want.
SMEBusinessGuide.com… https://goo.gl/E3pfoQ)
