Going to work in the family business, or inviting a family member into the family business can be a double-edged sword. There are certainly many benefits of blending family into business such as shared accountability, keeping the business alive into another generation, co-managing and the ability to discuss confidential matters with people you trust. Plus, many customers appreciate what family businesses stand for – integrity, reputation and stronger relationships. And then there are those dangerous disadvantages which can place the family unit at risk of strained, or even destroyed relationships which may in turn destroy the business if family members cannot resolve their differences. This typically occurs when one family member feels more entitled than another, when one sibling is expected to manage another (one brother is another brother’s boss), or when family members take advantage of each other because after all, family isn’t supposed to fire family.
Also consider employees who witness family politics on the sidelines. Some may be forced into precarious positions where sides must be taken pitting one family member against another. A prescription for a no-win situation.
For those who are thinking about joining their family business, or inviting a family member into the family business, consider the following before pulling the trigger, because once family blends into business, it’s a life-long commitment, for better and for worse.
1) Enroll into a strong leadership training program. As leadership is all about communication, each family member will need to know how to communicate with the other without bringing a history of family baggage into the business. Skills such as Active Listening and conflict resolution will come in very handy at the first instance of disagreement. Additionally, each family member will learn and understand how to respect the other while establishing boundaries between business life a personal life.
2) One person must be designated as a leader. Make it crystal clear upfront so that everyone understands. It’s only natural for some employees to lean on, or even play off of the different family members to seek decisions and approvals.
3) Drafting and signing partners agreements outlining very clear expectations, codes of conduct, processes for how disputes will be resolved and grounds for termination. If one or more family members must be sold or coerced into any one item, it may be a sign that blending business with family is not a wise decision, or that the timing may not be right.
4) Most importantly, establish boundaries between the business and family. Considerations must be given to the needs of spouses, kids and the household. Discussing business matters while the kids are opening Christmas gifts may be quite tempting because everyone is conveniently together, but it will probably go over like a roach in the punch bowl.
Other considerations such as succession planning should also be considered, but this is usually done after the honeymoon phase of several years once everyone in the business has settled and found their place.
You’ll note that everything is centered on communication, negotiation and willing agreements. I must say, that as a member of a family business, the best investment to make can be found in #1 above.