How to Grow a Family Business
- Redaction Team
- Entrepreneurship, Family Business
A family business is not something to start or enter into lightly. You’ll not only have to think of all the business ideas and challenges, but you’ll also have to deal with fallouts and disagreements and try not to let them get personal. This will be a huge challenge to have to go through because humans are emotional creatures and our family ties are strong, and going against them in the name of business – even if it’s the right thing to do – can be hard.
However, if you feel ready to start a family business or you’re already working in one and you feel it’s time to grow it, read on for some ideas that will help you navigate the potentially difficult time ahead.
Have a Clear Hierarchy
If you want your family business to grow, you need to have a clear and effective hierarchy in place. You can’t all try to lead, and you can’t all do things separately. There has to be a boss or manager, and everyone else must have roles that work together in the end.
Setting up these roles in the first place might be hard if there is more than one person who wants to do something. However, if you think about what everyone’s strengths are, you should be able to determine where in the business they will fit. There might be one person who is a great leader, for example, and another who is meticulous with money and can, therefore, understand good deals when it comes to private money lending for real estate, or someone else who has a creative streak that would be perfect for your marketing. When everyone has a role that plays to their strengths, the business will be a lot more successful.
Set Clear Expectations
It’s also very important to set clear expectations in a family business. Just because you know the people you’re working with very well, that doesn’t mean you can talk to them in a way you wouldn’t talk to an employee you weren’t related to, for example, and vice versa. The expectation here has to be that when you’re at work, it’s business first and family second. At home, however, it should certainly be the other way around, and you should leave the business in the office.
Another expectation could be that you want your family to work hard and always strive to do their best. Provide training and rewards and talk to them if anyone is not pulling their weight. In a family business, everyone has to play a part, especially when you want things to grow.
Hire with Care
There might come a time when you’re growing your family business when you need to hire more staff. These will be non-family members, and this can be problematic if you’re not careful.
The new people you hire must be able to do the job you’re hiring them for, but they must also be able to fit in with the family dynamic you’ve created and not be intimidated by this. It’s not always easy to find the right person, which is why you need to think so carefully before giving anyone a contact. Often, a trial period is a good idea for everyone involved.