5 Steps to Building a Strong Family Business

So, you’ve considered the pros and cons of starting a family business and decided it’s right for you and your relatives. Congrats! Now it’s time to learn about building a strong family business so it can successfully span future generations.

Steps to Building a Strong Family Business

Every family should be included in a small business plan in some way. But when relatives are on the pay roll, there’s more to consider in order to sustain a family business structure.

1. Communicate. It’s important in any facet of your life. Fostering an open and honest environment makes it easier to talk about and resolve issues. Set aside some regular family council time to talk about the business and where it’s going with or without other stakeholder input.
2. State your long-term vision. Make it compelling so everyone is on board and feels they have purpose.
3. Plan for the future. Not only is growing your business important, but so is ensuring descendants will have the tools to continue the legacy. Involve family early on so they can learn about the objectives, experience the day-to-day, and test the waters before they officially take the reins.
4. Get comfortable with conflict resolution. Problems arise in any business. When you work with family, it’s harder to not bring those conflicts home. Be open to professional mediation and coaching to work through issues. Reach out to other family businesses for peer support.
5. Set boundaries. In order to help balance work and home life, try to stick to a schedule and create work-free zones where you can focus on either business or family.

The more you can document your plan, goals, and processes, the easier it will be for others to make a smooth transition from family to employee. Focus on the positives rather than on pressure and set up your family business for success.