Issa Asad Shares 7 Tips for a Successful Family Business
Many businesses in the world today are family-owned. Family members can pull together and start a business that will benefit all of them equally. However, it is noteworthy that starting a business with parents, siblings, children, or a spouse can sometimes prove to be more daunting and could present a unique set of challenges over and above the difficulties of a typical startup. It is no wonder, therefore, that of every three family-owned businesses, only one survives to the next generation.
But that is not to spell doom for family businesses. “In fact, a family business, when operated well, can turn out to be very profitable,” said Issa Asad Florida entrepreneur, businessman, and social media expert. Mr. Asad is the CEO of 2 companies in South Florida, including Q Link Wireless and Quadrant Holdings. There are a few basics you’ll need to observe to strike the elusive balance between family and business. Below Issa Asad Shares 7 Tips for a Successful Family Business:
1. Define Boundaries
When engaged in family business, often the line between family and business will blur. Family members can talk about business throughout. However, you ought to understand that mixing home, personal, and business life is going to be harmful- not just to the business, but to the home environment as well. Therefore, it is prudent to limit business discussions to the office and try to refrain from talking about the business at home or in circumstances you should ordinarily be at ease.
2. Come Up with Clear and Regular Channels of Communication
Differences of opinion are inevitable in any organization- and a family business is no exception. Therefore, you will need to come up with means of resolution of any disputes that may arise. You may also consider having weekly meetings where you can gauge the progress of the business, and where you can iron out any differences if any. After all, communication is important in any set up.
3. Assign Roles
Not dividing up roles is a recipe for conflict. Therefore, for peaceful coexistence, you will need to divide up tasks and duties among the family members- to each according to their qualifications. But even after dividing up the roles, it is important that you come together to debate on big decisions affecting the business.
4. Reduce Contractual Relationships to Writing
There is a temptation to run the business ad hoc since you are all family members; however, to avoid any wrangles and misunderstandings in the future, it is proper to write any agreements and contractual obligations down. Shares, duties, compensation, etc. should all be in writing.
5. Employ Expertise
Though it is a family business, it is not wise to employ relations who do not have the requisite skills for any vacancy they seek to fill. Any employment of a relation should be based on what knowledge and skills they bring to the business.
6. Demarcate Clear Management Lines
Family members who got an ownership stake in the business may unfairly reprimand employees, and that may breed resentment. Therefore, it is proper to delineate the management lines so that it is clear who will report to who.
7. Come Up with a Succession Plan
There should be a succession plan clearly spelling out how the business or its assets should devolve in case of anything. The plan needs to be financially sound to the business as well as to the retiring family members.
In conclusion, a family business is an attractive venture, and it has a host of advantages over other kinds of businesses; however, you’ll need to strictly observe the listed basics if your venture is going to succeed.
