Running a franchise with your family may sound like a dream come true for some of you. It also may surprise you to hear that “about 90% of all U.S. businesses are family-owned or controlled by a family,” according to Forbes. With so many businesses run by families, we thought it would be useful to share some tips and pointers on how to run a successful family business.
Put it in Writing
From contracts to job descriptions to performance metrics, it is in the best interest of the business, and the family, to have things clearly outlined in writing at every step of the way. If you went out and made a new hire for the role – you would have the roles and responsibilities clearly identified. In a business with family it’s even more important to clearly delineate those expectations of who will be doing what. And then stay in your lane! Make sure stipulations are made for death and divorce. It happens.
Understand Goals and Aspirations
It’s important to actively engage your employee/family members to ask them what their career goals and aspirations are within the organization. Having open, direct conversations about the direction they see themselves taking in the family business goes a long way. This will eliminate any hurt feelings (and worse – lawsuits) down the road if the business gets sold, or someone becomes ill,
Go Outside the Family Tree
It’s a great idea for a family business to create a board and bring members outside of the direct family unit to provide guidance, differing opinions, and ultimately, a different way of viewing the business.
Know When to “Turn it Off”
When you have a family business, the lines between professional and personal can seem perpetually blurred. When does work start and stop and when is it just “family time?” Set some boundaries with your family around these times.
Running and working for a family business can be one of the most fulfilling things in life. Setting up proper rules, boundaries, and guidelines can help you get there with a little less stress and confusion.
This blog was originally posted July 11, 2017. You can read it in its entirety here.