Family business – rules and pitfalls

At first glance, family business can be called an ideal business option. Everyone knows each other, they will treat each other well and will not throw in a difficult situation. This is all, of course, but, nevertheless, the family business has a lot of pitfalls that you need to know about those who are on the verge of creating a family business. So, let’s talk about the pros and cons of the family business in more detail.

Family business – Rules and pitfalls

First of all, many family members, having also become businessmen, for some reason, think that they should be understood by default. And are very surprised when it turns out to be wrong. But everyone needs to understand that those rules that act between you, as between members of the same family, cannot always be convenient in business. For example, you are used to calling your soul mate or your relative several times a day. It would seem – what’s wrong about that? But, if this person, for example, will be in business negotiations for some time, then your call at this time will be inappropriate. In this regard, about the methods of communication to relatives leading a joint business, it is also worth negotiating separately. This is the second point to pay attention to.

We go further – point third and no less important. Thinking about creating a family business, you will need to learn how to separate work from a joint vacation. Otherwise you will work, as they say, for wear.

Another situation for which you need to be prepared for everyone who decided to take part in a joint business. And, unfortunately, this problem is quite common-someone does everything, but someone. And considers it to be granted, because still relatives, not strangers. What can be advised in this case? Naturally, to discuss everything on the shore, even before you organized your family enterprise.

Family business – Rules and pitfalls

It is necessary to clearly distribute all the responsibilities, and it is advisable to do it in writing. It is also very important to make a hierarchical staircase in which it will clearly see who is the boss in your business and who is the subordinate. If your joint organization does not have a boss, then it will not have order – this also needs to be understood in advance.

The next very important point concerns finance. Moreover, this is not only the distribution of wages, but also the right to sign on documents, the right to distribute cash flows, and so on. If you do not discuss such issues in advance, then at one time your family business will simply fall apart.

By the way, so that later your business is easily and without inconsistencies, it is best to write all the rules of your business in the form of a document with signatures of everyone who participates in this project. Of course, it is not necessary to certify it at the notary, but if you do it, it will add legal force to him, which is important. Such a document must be included in all points, starting the responsibilities of each employee and his wage and ending with control over financial flows.

Another mistake of most of those who just start their business is that all relatives accept this project, despite their professionalism or its absence. And this often leads to the collapse of the family project. Your company will be successful only when each of its employees will benefit. And, for example, what will be the benefit of your family car wash from your second cousin, who recently graduated from hairdressers courses? Of course, no, so it is unlikely to be hired, although she is your relative.

Family business – Rules and pitfalls

It will be good if the development of your family will observe, for example, a friend of your family, the so -called external adviser. Agree that some points are still better visible from the outside, so listen to what this person will tell you.

And finally, the last. Remember, family business is not for everyone and not forever. If your relative has found another place of work and decided to leave the family business – this is his right. Do not condemn him or offend him for this. The goals throughout life are changing, and your relative is no exception.