As the Inc. piece points out, the freedom of not having to answer to shareholders, a board of directors or hundreds of employees can be a benefit of family operations. However, those closest to you are dependent on your success for their own success. For some, that means even more pressure. The best way to handle this situation is to...
"Keep solid books. By incorporating basic financial tools used by other businesses, including balance sheets and income statements that are prepared regularly for distribution among family members. By sharing and analyzing financial data, you can make your business more predictable, and thus more stable. If no one in the family has a knack for financial analysis, establish a relationship with an outside accountant. Over the long term, strong financial will be an absolutely essential tool."
Not only do you make profits and income more predictable, you avoid conflict that can arise when there are mistakes in bookkeeping or accounting that can cost you and other family members money.
Be sure to have those formal meetings we discussed earlier so your planning and strategy is clearly defined and everyone who wants to be a part of it, is a part of it. And don't be afraid to be formal. Heck, this is your company and being in business is a serious thing. Draft agendas, set firm times to begin the meeting and adjourn it. You will be more productive with the way you as well as others, use that time.
When your business is part of the family, family cannot always come first. By putting business first sometimes, you are actually putting family first.
And last but not least, while planning is key for the future. Be sure to always have awareness of the present and operate, both in terms of business and your role within your family, in the sense of today.
"Keep solid books. By incorporating basic financial tools used by other businesses, including balance sheets and income statements that are prepared regularly for distribution among family members. By sharing and analyzing financial data, you can make your business more predictable, and thus more stable. If no one in the family has a knack for financial analysis, establish a relationship with an outside accountant. Over the long term, strong financial will be an absolutely essential tool."
Not only do you make profits and income more predictable, you avoid conflict that can arise when there are mistakes in bookkeeping or accounting that can cost you and other family members money.
Be sure to have those formal meetings we discussed earlier so your planning and strategy is clearly defined and everyone who wants to be a part of it, is a part of it. And don't be afraid to be formal. Heck, this is your company and being in business is a serious thing. Draft agendas, set firm times to begin the meeting and adjourn it. You will be more productive with the way you as well as others, use that time.
When your business is part of the family, family cannot always come first. By putting business first sometimes, you are actually putting family first.
And last but not least, while planning is key for the future. Be sure to always have awareness of the present and operate, both in terms of business and your role within your family, in the sense of today.
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