Running a family business can be one of the very best ways to do it and in doing so you can have a great deal of support on your side. Unfortunately there are some instances where this can go awry which is why any families which are looking to get into business together should lay out some ground rules before they do. For brothers Frank Enrico Andreoili Montreal has been very good to them by way of business and they are often quick to stress the importance of having rules when running a family business. Those rules will keep the business and the family in good shape.
Mixing Business and Pleasure
One ground rule which must be set in place before you go into business together is that family time is family time and work time is just that. Once you start blurring the lines between work and pleasure the only thing that will suffer is the family time. It is much less likely that you will be discussing family topics at work, and much more likely that work will eventually seep into the family time, which will only lead to further distance between the family. For this reason always ensure that your time together as a family is spent doing normal family things, with business off the agenda.
Dividing Up Responsibility
Running the business as one will not be possible, responsibilities and roles within the business most be divided up and this must be agreed by all involved. The danger of not doing this is that messages get confused, people have different ideas on how to do things and conflicts can certainly take place. Split the roles and make sure that everyone understands where the boundaries lie.
Bringing In Neutrals
If all of the owners and the management team are family members then you do run the risk of having more discussions and more conflict than is required. This is why it will be an important move to bring in some neutral staff who will not only be able to come in and offer some value to the business with their own qualities and ideas, but they will also act as a natural buffer between family members.
Dividing Up Money
Money may not be the root of all evil as the Bible states but it most certainly can cause problems between friends, loved ones and family. It is for this reason that it is important to break down who gets what, before the business even makes money. Understand who has what percentage stake, who will be getting paid a salary and what compensation those with a percentage stake will be getting paid. Ensuring that this is arranged before the money comes in means that you will have made the decision from a neutral place and there will be no need for arguing or discussing this topic any further.
Follow these rules for a successful family run business.