Just like being the CEO of a Fortune 500 company, running a family-owned business is about good management and leadership. They face the many of the same issues as any other company, as well as some the average business mogul never thought of; it can be a bit difficult to reconcile managerial roles to family dynamics. You need to work together with other members of your family and run the business professionally in order for it to succeed.
Leadership vs. Management:
Simply put, leadership is about vision and management is about turning the vision into reality. Leaders motivate people through their vision, while a manager?s job is to take care of the practical details of achieving that goal. Managers need to be on the spot, taking care of little details, getting day-to-day problems sorted out, and ensuring the smooth operation of their department.
Family-Owned Businesses: Issues.
The major issues in family-owned businesses are about conflicting family dynamics and how it affects the business hierarchy. Some of the questions and issues that may arise in the family-owned business include:
1) Which family members will be part of the business?
2) What will be the role of the members who do not join the business?
3) How to manage the differing roles at home and the workplace?
4) Voting share is a prickly issue; a majority voting system can cause a great deal of heartburn for certain family members.
5) Try not to make business discussions a part of conversations at home, as family members who are not involved in the business may feel left out.
6) Since managerial skills do not come as naturally as family relationships, they need to be learned. You must invest in training people at the top for their roles in your family-owned business.
7) The employees should not feel threatened or left out when the top managerial positions are occupied by members of a single family. When employees see their managers as part of a clique, instead of someone likely to understand their problems, it can cause resentment and demoralization.
The leader?s vision for the business must be in tune with the aspirations of the family as a whole.
9) If you hire an outsider to the top levels, their views should be considered as important as those managers who are members of your family.
10) Promotions and incentives should be based on skills and contribution to the company, not because a particular employee or manager is part of the family.
11) Never let the business stagnate through associating only with a closed clique of family members; you should approach outsiders for ideas and guidance if you think the long-term association within the same group is restricting the flow of new ideas.
Many family-owned businesses find their family members discussing issues related to home at the workplace, or vice-versa. Business growth is also hampered when the family is not ready for the changes and new ideas that can come only when you consider the views of outsiders. Good leadership and management, as well as understanding that family dynamics do not always work in a business setting, are keys to running a successful family-owned business.By: Alexander Gordon
About the Author:
Alexander Gordon is a writer for http://www.smallbusinessconsulting.com ? The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.Business Owners all across the country are joining ?The Community of Small Business Owners? to receive and provide strategies, insight, tips, support and more on starting, managing, growing, and selling their businesses. As a member, you will have access to true Millionaire Business Owners who will provide strategies and tips from their real-life experiences.
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