Tips for managing a family business

Family businesses are those that are formed by one or several members of the same family. In this way, both the capital and the management of the business fall on the family nucleus. This model of organization has clear advantages compared to the rest, such as trust and continuity. However, these elements can become a disadvantage if the company is not addressed correctly. When the link between the partners is so close, the risk of conflicts between them when it comes to managing and making decisions increases. Therefore, in this article, we want to give you some tips to manage a family business and achieve success.

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For the organization of the family business to be as efficient and productive as possible, the most advisable is to establish the positions based on the skills of the members that form it. Thus, each member of the family will enjoy doing what they do best and will be able to exploit it to the maximum, increasing the production and profits of the company.

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One of the fundamental aspects that must be taken into account in order to manage the family business without conflicts is to know how to separate the family relationship from the work relationship . Taking advantage of the trust and the bond created between the members of the family is adequate to carry out good business management. But, transferring family problems and conflicts to the organization of the company can mean the failure of it.

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In this sense, it is important to understand that a business should not be managed like a family. In spite of working with the members of your family, during working hours you are all workmates and, outside of it, parents and children, brothers, uncles and nephews, etc. This means that it is convenient to separate the times and establish some hours for work and others for free time.

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In order to maintain the correct organization of the family business, it is essential to respect hierarchy levels, as well as to offer all employees the same opportunities. On many occasions, family businesses offer their family members privileged treatment with respect to other workers of the same rank, a fact that disturbs the workforce. To avoid dissatisfaction of the workers and maintain productivity it is important that all members of the same level of work have the same treatment.

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Setting goals and strategies to follow is essential for managing the family business. This model of organization usually takes each of the decisions and creates the different social organs according to the particularities of the family, configuring an image and its own characteristics. In this sense, it is important to establish a Family Council composed of members with strategic capabilities.

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The Family Protocol is an essential step to manage the family business correctly. At the time of doing so, all members must put on the table each of their interests, objectives and types of relations with the rest of the members in order to create a common document with guidelines and rules to follow during the day to day.

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It is advisable to stipulate the generational succession in advance to ensure the continuity of the family business. It is important to be prepared for any setback and to know who will be the next business leader.

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Take into account all these tips to manage a family business and increase the efficiency and productivity of your business. Remember that poor management can lead to the failure of your company and, in the worst cases, even harm family relationships.