Yu are now your own boss and you love it.
You have survived the recession and you now want to grow.
Regardless of the economic times, running a family business is a juggling act.
The needs of the business to grow and prosper have to be balanced against the needs and expectations of family members.
While objectives for any family business can include profitability, business growth, planning, and managing issues, such business concerns are overlaid with specific family considerations, the most important of which are balancing short- and long-term business decisions, maintaining the loyalty of family members, and the grooming of willing and able successors.
Here are a few tips that will help you run a successful family business whilst maintaining peace and harmony in the family.
Facilitate regular family meetings: If the ‘Elephant in the room’ is already out and raging by the time you set up regular meeting schedules, the family will have a hard time getting used to your meetings. While it can be started in times of crisis, it can be better built when no major issue is tearing at them.
Establish a Constitution: Have a Constitution so that every family member involved in your family businesses understands their roles and responsibilities.
The purpose of a constitution is threefold, namely (1) It documents the values and principles that will underpin the culture of the family business (2) It defines current and potential opportunities, expectations and accountabilities for all family members and (3) It sets out parameters by which family will make decisions that affect the ownership and management of the business.
Network with other family businesses: Share your ideas with other family businesses and learn from them. Conferences such as the Family Business Forum, which is to be held this year on July 5 at Eden Park (Auckland) are ideal opportunities to share and receive ideas.
Communication: Communication is often considered the single most important aspect of a successful family business. Understand the dynamics of all family members involved in your business.
Keep them informed regularly on business performance, exit strategies and succession planning.
Mark Kippenberger is Head of Family Business Services at KPMG New Zealand. The above article, exclusive to Indian Newslink, should be taken only as a general guideline. For individual advice suitable to your business and circumstances, please email mkippenberger@kpmg.co.nz
