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  Running a family business is like every other business, but there are issues specific to a family-owned business. Most times, the head of the family, or the most senior member who has business acumen, is in charge of business operations.
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For other members of the family involved in the business, all employees including family members, should be clear, and responsibilities defined to aid the smooth running of the business. Other tips that will aid the operation of the business include:
  1. Set some boundaries. There should be a clear distinction between business, personal and family matters. All discussions about the business should be had in the business environs, with confidentiality assured.
  2. Establish clear communication channels. Just like in a regular business organization, clear channels of communication should be identified and used. Correspondence can be done via emails and other platforms without utmost professionalism. Non-formal channels should not be used to pass across sensitive information about the business.
  3. Divide roles and responsibilities. One of the ways to minimize friction is to ensure that roles, functions and responsibilities are clearly spelt out, so everyone knows exactly what is expected of them, and how to handle such with minimal interference.
  4. Recognize the advantages of family ownership. Family-owned businesses have clear benefits. You get to access different assets without being indebted, and you can leverage on relationships.
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  1. Stay professional. This is going to be quite difficult, but the earlier this is gotten out of the way, the better for all the parties involved. The best way to stay professional is to enforce organizational ethics without favouritism or bias. Let everything be done on merits and criticism, praise, given unconditionally. Don’t set standards higher or lower for family members than for others at any time.
  2. Draw up contracts. Ensure everything is written for reference purposes. This prevents miscommunication and serves as evidence and proof if need be.
  3. Don’t provide “sympathy” jobs for family members. Avoid becoming the employer of last resort for your kids, cousins or other family members. Employment should be based on what skills or knowledge they can bring to the business.
  4. Draw clear management lines. Let clear managerial lines be drawn so the boundaries are enforced. Draw up the chain of authority so it is clear who is reporting to who. Also, there should be a code of conduct to enforce the culture and values of the organization.
It is no news that family businesses are about tradition and pride. While it seems that corporations overrun the business world, several family-run businesses thrive, thanks to strong management. With these tips, you can create a management plan that survives through several generations. Featured Image Source: Inc. Magazine
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This article was first published on 4th January 2022

grace-christos

Grace Christos Is a content creator with a proven track record of success in content marketing, online reputation management, sales strategy, and so much more.

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