Top ten tips for family businesses
Here are some great tips for those in family owned and operated businesses from the Australian Small Business Commissioner:
- Leave work at work and home at home.
- Have clearly assigned roles for each family member to avoid feelings of being taken for granted, over-worked or under-utilised.
- Pay the market rate - remunerated the job and not the person.
- Develop a strong, capable management structure - don't confuse ownership or inheritance with management.
- Have clear, consistent communication - both good and bad news must be shared.
- Clearly define entry and exit criteria for family members before an event occurs.
- Develop a succession plan and ensure that it is endorsed by interested parties - a communicated process rather than sudden event.
- Use outside advisers who can provide unbiased, objective advice - preferably accredited, family business advisers.
- Hold regular communication sessions and family 'retreats' - the best results are those facilitated by a 'third party'.
- Use external advisers, sounding board, mentors and family business forum groups.
Visit the Australian Small Business Commissioner website to learn the "Best practice principles for family business".