You have heard it before that involving family in business is never a good idea. However, there have been many families who have succeeded in making their businesses succeed for a hundred years or so. What is their secret?
Strong Core Values – When you start a family business, you need to have strong core values and a mission that should be passed down to one generation to the next. And each member involved in the business should be committed to them. This makes their involvement more meaningful.
Transparency – Everyone involved in the enterprise should have access and be informed about business plans, financial records, trust documents and other important papers and agreements. This develops more trust and participation.
Adaptability and Resiliency – Any business will face a crisis and any family will face a tragedy. Successful family businesses are able to withstand and push through despite these problems, and they fight challenges in a constructive, adaptable, and resilient manner.
Engagement and Collaboration Among Generations – Fighting and arguing is a normal stage siblings will go through, but through that phase they learn to work better together. However, that is not the case with everyone. In the family business set up, allowing other relatives or family member who are married in to participate may even make it more challenging because there will be more differences. However, if everyone has a shared sense of purpose and commitment, there is a better chance to create common ground, trust, cooperation, and respect among all members.
Providing Opportunities – Successful family businesses allow family members to develop and contribute as entrepreneurs, innovators, business leaders, and even as philanthropists.
Another key factor as to why some family businesses succeed is because they go beyond working with relations just to expand their empire; they also see it as an opportunity to develop stronger bonds within the family and to use their gains as a means to together help their community.