Three Tips For A Family Business

2008 | Sep 11 in Family Business , Management , Leadership

For most of us, our business is separated from our home life. If we have a bad day, we go home and vent to our loved ones, maybe get a little sympathy and then move on. But what if your family and your business are one in the same? What if you can't vent at home because the person you vent to is your business partner?

Business can be challenging; but a family business--well that can take "challenging" to a whole new level. A lifetime of shared experiences creates a complicated history even for the most "functional" of business partners. And let's face it; nobody knows just how to push our hot buttons like family! It's easy for family members to get bogged down in inter-personal and communication breakdowns issues that can seriously get in the way of business.

So how do you rise above the family landmines and focus on business? Here are three tips from E-Myth Business Coaches.

1. Business is Business

Much of the strife in family business occurs because the lines between personal and professional become blurred. Keep in mind that your business is a separate entity. As much as your business means to you, it is not an extension of the family.

E-Myth Tip: Don't discuss business after 6 pm. Yes, it's that simple. This is going to be a serious challenge for some of you, but it's really important as you separate your family life from your business life to set some strict guidelines. Remember, business is business. Don't take it home with you!

2. Clearly Define your Roles

Whether they're CEO, CIO or CSC (Chief Stock Clerk), family members fulfill roles in a company just like any other employee. Each family member must have clear accountabilities for their role(s) in the company. To be successful, and to fulfill your Strategic Objective, the company must get specific results from every employee--including your family.

E-Myth Tip: Every employee should report to one manager. In family businesses, managerial responsibilities are often blurred because roles aren't clearly defined and sometimes spouses or family members occupy the same place on the organization chart.

Keeping with the family analogy, think of managing like raising a child. If you tell a child one thing, and your spouse tells them another, how does the child know what they are supposed to do? Mixed messages lead to trouble. The same thing goes for an employee, and it's especially important when the employee is reporting into a family situation. It's vital to have a clear management structure so your employees know exactly who they report to and what's expected of them.

3. Communication is Key

From an E-Myth Business Coach:

I worked with a husband and wife team who, on the surface, seemed to work pretty well together. Each had their own strengths and weaknesses; and they were both actively involved in the business. Outside of work they did a good job of carving out time to be together and they enjoyed their free time, but their problem came as soon as they set foot in the office. The minute they got to work, they stopped communicating! This isn't an unusual thing for a family business; I've seen it time and time again. The key is to recognize that there's a breakdown in communication and to take the steps to open that communication channel. For this couple, the big shift came with the implementation of a regularly-scheduled management meeting. A meeting not between husband and wife, but between two managers...

E-Myth Tip: Create a structure for communication. Set a weekly management meeting with a clear agenda and action items. If you've created and communicated the businesses' Strategic Objective, and each member of your management team (and family) has clearly defined roles and accountabilities, they should walk away with simple and results-oriented "To-Do Lists."