Navigating a family business

Owning and running a family business presents unique challenges and rewards. The family dynamic can add layers of complexity to the work environment, but it also provides a sense of unity and shared purpose. Navigating a family business requires careful consideration of relationships, boundaries, and communication.

Here are some tips for successfully managing a family business.

1. Clearly define roles and responsibilities: Family members should define their roles and responsibilities within the business. This will help to avoid confusion and promote efficiency.
2. Develop a strategic plan: Family businesses should develop a strategic plan that outlines the vision, mission, and goals of the business. This will help to ensure that everyone is aligned and working towards the same objectives.
3. Foster open communication: Effective communication is critical in any business, but it’s especially important in a family business. Family members should communicate regularly to ensure that everyone is on the same page.
4. Establish a governance structure: Family businesses should have a governance structure that outlines the decision-making process and the roles of family members in that process. This will also ensure that governance of the family is separated from governance of the business.
5. Implement a succession plan: Family businesses should plan for the future by developing a succession plan that outlines the process for transferring ownership and leadership to the next generation.
6. Seek outside advice: Family businesses should seek outside advice when needed. This could include hiring consultants or advisors to provide guidance on legal, financial, or strategic issues.
7. Focus on financial management: Family businesses should prioritize financial management by establishing clear financial policies, regularly monitoring financial performance, and investing in the business wisely.
8. Maintain a healthy work-life balance: Family businesses often blur the lines between work and family life, which can lead to burnout and stress. It’s important to prioritize work-life balance to ensure the long-term success of the business and the well-being of family members.

Challenging times are inevitable in a family business, just as in any other business. During these times, it’s important to focus on and consider the following:

• Consider the question, “Why are we in business together?”
• Work on transmitting family values through the business and the family
• Celebrating the family’s achievements
• Fostering family inclusivity
• Reconsider and articulate the family’s long-term plan
• Socialising and having fun together through some team building activities

Running a family business is gratifying and fulfilling, but it demands careful attention to the unique challenges arising from merging business and family. With clear communication, mutual respect, and a shared vision, a family business can prosper for generations to come.

 

Written by Mandy Roesstorff

Director of BVSA Port Alfred

mandyr@bvsa.ltd