Working in a family business can be a deeply rewarding experience, yet it comes with its own unique challenges and demands. Family-run businesses are built on the foundation of generational success, and it’s important to create an environment that taps into its greatest potential. It’s also important to be adaptable and intentional about those changes when new family members join the team. Take a look at some considerations when expanding your business with the addition of siblings and cousins.
Understanding Your History
Family businesses are known for their distinctive cultures, shared values, and evolving legacy; these factors reveal why it is crucial to understand the overall shared vision of the business. These enterprises thrive on a strong sense of ethics, a visionary outlook, and a resilient spirit that withstands hard times. Considering the business’s history will allow you to gain a deeper appreciation for its successes, as well as its challenges that have led to greater perseverance. A solid understanding of a family’s business history will help guide future generations, as well as new employee additions, to securing the legacy and success of the business.
Collaboration for Continued Growth
The addition of new family members such as siblings and cousins can effectively contribute to the overall growth of the family business. While shared values are the glue that holds a business together, with those values come opportunities for dynamic growth and collaboration. Both siblings and cousins may provide shared experiences as family members, but they also bring unique perspectives that can help challenge and grow the family business. Additionally, family business advisors can aid in mitigating risks, overcoming challenges, and providing best-practice strategies to help ensure stability across generations.
Governance Processes for Increased Success
Having governance processes and structures in place will make it easier for cousins and siblings who are working together, as well as make it easier for cousins and siblings who are considering joining the family business. Governance is unique in a family-owned enterprise—as the business grows and ownership becomes more diverse, the business and family will likely have different needs. The solution is to utilize an organizing model that is divided into both business governance and family governance. While working with family members can be extremely rewarding, separating business and family governance protects the family enterprise while enhancing a structure and culture of open communication and clear processes for all.
Helping Your Family Business Thrive
Siblings and cousins both contribute unique perspectives to a family-run business—these relationships can help strengthen a company’s shared values and long-term goals. It’s important to foster an understanding of the enterprise’s history, including its founding vision, to create continued stability as business members shift and change. Our family business consulting can make a difference by helping family-owned businesses overcome obstacles and aid with transition planning, conflict management, and sustainability.
Let us assist your family-owned business with our expert guidance in family business consulting services, family business governance, or continuity and succession planning. Get started today and take comfort in knowing you are taking active steps to build a solid foundation for your business.
