5 Things To Take Care of If You Are Into Family Business
Family owned or controlled businesses play a key role in the global economy. They account for an estimated 80% of companies worldwide and are the largest source of long-term employment in most countries. As per PwC’s latest global ‘Family Business Survey’, of the family firms surveyed, 65% of them reported growth in last one year (2014). And 70% are expected to grow steadily over the next five years.
But below are also some astonishing facts & figures which will blow your mind. The survey by ‘Family Business Institute’ focuses on the inheritance percentage of family business by their next generation which shows that only 3% of businesses operate into the 4th generation & beyond.
So here are some cues which you can practice or adopt to make your family business a sustainable one.
1) Don’t Prejudice between Family vs. Non-Family: If you happen to run a family business then you would have to deal with two kinds of employees-1st one being your own family members or relatives & 2nd one being the non-family members. Always remember that you have to treat both of them equally. Because you doing favouritism to any of the side would demotivate the other set of members which could severely impact your business.
2) Communicate Honestly: If you have someone working for you in the company, i.e a friend or a relative then don’t keep it secret; communicate it clearly with all the team members from day one. Or if you have an important update to share with team then make sure it is communicated to the team members at the same time without any discrepancies or delays. This will boost the trust factor amongst co-workers & the team will put in their trust in the leader.
3) Company Benefits: Let’s be a professional run company wherein we don’t pass on benefits or commercial gains to our relatives or family members just because we know them outside our company as well. If benefits are passed on in that manner then it should be for all and not for only a few set of people.
4) Off the Payroll: Make sure everyone has roles & responsibilities in the company, if someone is not performing, then put them off the payroll. As simple as that. Even if they happen to be your near & dear ones. Equality & uniformity should persist for all the team members, irrespective of it being a startup or a billion dollar company.
And last but not the least
5) Family Decisions Vs. Business Decisions: You should note that family & business are two different entities, while making important decisions pertaining to them. You should remember that family decisions & business decisions are a different ballgame altogether & should be dealt independently of each other. This one takes the real test of an entrepreneur.
Let’s know your view about the article and if you have any points to add in. Your views are important & would be appreciated.