When operating a family business, strategy can be reserved for competitors. There is a fair amount of juggling involved to keep everyone happy. A family business should feel like an investment made towards future generations. That can’t happen when either the enterprise or the personal side takes priority.
Not everyone can find the right balance for their firm. Learn more about how Positively People can help you find where both sides will benefit most.
You Can’t Always Put Family First
Even when a founder intends to keep it family first, businesses also need that kind of dedication. This kind of mentality often finds owners pulling double duty every day. You may be able to maintain that pace at first, but ultimately you aren’t going to be able to clone yourself. Somewhere, a compromise needs to be found to keep healthy boundaries.
Policies that only favor the family will lead to the company’s failure. Balance in all matters is key to seeing both sides grow simultaneously.
Don’t Freeze Relatives Out
On the other hand, more than one family firm has effectively locked relatives out. Rather than including family members, they agreed to an all-professional board instead. While that may be beneficial to the company, it keeps your family uninformed. That can eventually lead to a business without an invested family. This can also create resentment from both sides. It’s best to find the right mix of relatives and independent directors.
Engage Your Shareholders
An advantage that family businesses have over other companies is that they tend to have more engaged shareholders. This doesn’t happen by accident, but by careful planning.
Specifying which relatives serve ceremoniously or with power can determine who becomes the most involved. Some should offer advice surrounding the culture and values while others are better fit to pursue profits.
Expanding access to information, education, and training can encourage emotionally invested members. You may need to include coaching materials into the mix to create a unifying goal.
Make Parallel Planning a Core Family Business Strategy
It takes strategic planning to benefit both the firm and your family. Where they intersect is where you will see the most amount of synergy. Any improvements made to the brand should also happen with finesse. Too often, relatives push to include goals that are far outside of the company’s capabilities.
The family should maintain a long-term commitment to the business. It’s also important that the company also includes the family in every decision it makes.
Manage the Expectations of Those That Benefit
Having a successful business in the family can get to some people’s heads. Some families have members that have little involvement with operations or policies, yet get on a power trip and try to take over decision making.
As a result, higher spending happens, especially around the holidays. Before you know it, the company becomes cash-poor with too many responsibilities. A grateful family understands how the business also benefits them. Be sure to include outreach efforts to everyone that the brand helps in some way.
Improve Your Family Business Strategy
Strategic thinking doesn’t happen overnight – it takes time to learn. That is why it’s best to hire our family business consulting firm. Positively People helps you maximize your brand’s strengths without leaving relatives behind. Contact us today for a consultation.
Learn more about Positively People Services in Family Business Strategy.