Five Tips to Managing Family Businesses

By | July 14, 2013

Family-businessThe family business has been the backbone of entrepreneurship world since many years. Trust, the family business that drives 70 percent of Gross Domestic Product (GDP) of the world.

Rothschild is regarded as the oldest dynasty who underwent successful family business with a personal profit scale throughout modern history. International banking business initiated in the early 19th century was skippered by Mayer Amschel Rothschild (lifetime 1744 to 1812). Looking at the success of the German family dynasty, the Forbes magazine in 2005 did not hesitate to put Mayer Amschel Rothschild in 7th position in the list of “The Twenty Most Influential Businessmen of All Time”.

Wal-Mart Stores, Inc. is one of many family business success stories of modern times. Founded by Samuel Moore Walton (lifetime 1918 to 1992) in 1962 and is now led by his eldest son, Samuel Robson “Rob” Walton, Wal-Mart is the largest retail company in the world from America when viewed from its revenue.

Two stories above is proof that a family business can be a strong foundation to plug themselves on the world stage entrepreneurship and attained world recognition of achievements. All dream. But like two sides of a coin that is contradictory, run the family business can also be interpreted as a nightmare. It occurs when there is a negative aura within each family member can create animosity to end up with a split.

The story of the Rothschild dynasty and Walton was included in the dream to be achieved by everyone. Obviously, the people in the family dynasty that they need to fight hard, dedication and high consistency to achieve success. For those of you who want to run the family business with his sister, brother, cousin or are managing a family business with its closest relatives, the following five tips for success success as quoted on CNBC’s website.

communication

Communication is the key to creating better relationships in all sorts of aspects of life. There are times when, in family relationships, among its members often feel free to express mutual feelings raging in his mind. The flavor is underlaid hesitate to not want to hurt the feelings of the beloved. But in the business world, it is important to express your opinions or expectations clearly and openly. Do it as if dealing with a partner from outside, if you want a business that achieve the set targets.

expectations

In a broad sense, it refers to the communication points. As mentioned earlier, it is important to communicate expectations clearly as possible to the business partner is none other than your own brother. Better expectation that does not intersect with each other, it is important to describe each business expectations before standing. Speak what you would expect from a business partner and from which you shared governance and vice versa thank also the expectations of your partner. Find a deal, and document the vision and mission of the company.

Business Relationships

Despite how strong the relationship between you and a partner, there is always the possibility of dispute. To prevent that, you should wake up a business relationship formal as possible. If necessary make a written agreement as well as a business agreement. Some entrepreneurs who opt for family businesses may be reluctant to do so because they thought that the written agreement is a form of distrust of your own. But otherwise, a written agreement is designed to protect all parties related to each other in business.

priority

Everyone wants to be a successful entrepreneur and make a profit or even managed to change the world. However, it is also important to prioritize family relationships over the business. Do not let your business become a boomerang that resulted in dispute or even split. You might be able to build another business or earn money in other ways but blood ties can not be sought apart from relatives you have. Prevent a dispute with a healthy perspective and solve business problems which are hindering your family without sacrificing kinship itself.

Have fun

Even if you really enjoy the process of managing and doing business with relatives but note also the time to have fun with them outside of business hours. If the content of the conversation or the shape of your relationship with relatives just about business, it will not only crack the ties of kinship but also direct your brother in the depressed position. It is better to take the time to have fun or do ‘family time’ usual you and your brother often do before starting a business. And, do not even alluded to the business in the ‘family time’ is. If you can establish a strong bond with family, relationships in the world business automatically be created properly.