• Home
  • About
  • Contact

The Private Business Owner

An Online Publication by Generational Equity

  • M&A
  • Finance
  • Human Resources
  • Operations
  • Sales & Marketing
You are here: Home / Human Resources / How To Handle Family Business Problems

How To Handle Family Business Problems

March 14, 2012 By Lindsey Perkins Wade

Family businesses account for 90 percent of all businesses in the U.S., both large and small in size, according the Small Business Administration. Needless to say, many Americans work in an environment with family dynamics.

If you are the owner of a family business, then you know that a special set of challenges can accompany running it. We discuss a few problems today and provide suggestions to resolve them.

1. Family members bring family politics to work.

It is very difficult for people to leave personal problems at home, but that needs to be the goal, especially in a family business.

Work is work, and everyone’s goal is the same: increase the bottom line. Family politics or disagreements need to be put aside for eight hours so that the company can continue functioning properly. If family members can’t do that, then everyone’s job is in jeopardy, and things will only get worse.

Suggestions

  • Communicate that all decisions made at work are in the best interest of the company—not based on who likes who
  • Establish a clear chain of command
  • Explain the effect of family bickering: bringing down the morale of everyone, decreased productivity, etc.

2. Non-family employees are disgruntled because of perceived favoritism.

On the flip side, family business owners must make sure that non-family staff trusts them. They earn this trust by treating all employees equally and fairly. Don’t give your staff any reason to believe or suspect that your relatives are favorites.

Suggestions

  • Go to lunch with all employees, not just your relatives
  • Communicate often with everyone, not just with your relatives
  • Publically praise both family and non-family workers on a regular basis
  • Clearly outline the chain of command to every employee and make sure that everyone understands it. Let your entire staff know that nobody, not even family members, can go around each other to get a desired result.
  • Stand by your employees’ decisions no matter who they are related to

3. A relative must work with you but doesn’t add value.

Oftentimes, there is always one family member that just can’t pull their weight. Whether it’s because they lack the skill set or they are just lazy, the relative can’t or won’t contribute positively to the company.

If you find yourself with this problem, you have several options. None of them are quick fixes, as all options require patience and time so that you can hopefully find the right fit for your relative.

Suggestions

  • Provide extra training and/or send them to productive workshops
  • Assign a non-family mentor so they can learn from others
  • Allow them to shadow employees in various departments so they can discover which area they like the best. If they like their work, hopefully they will work harder and improve.
  • If they can’t find a good role, encourage them to go back to school to find out what they are passionate about.

Generational Equity specializes in helping owners of family companies sell their businesses. They know the ins and outs of running and growing one mostly because they are family run. For information about how to sell a family-owned business, click here.

© 2012 Generational Equity, LLC All Rights Reserved

Share this:

  • LinkedIn
  • Twitter
  • Facebook
  • Reddit
  • Pinterest
  • Email
  • Print

Filed Under: Human Resources, Operations Tagged With: employees, family, family-owned business, motivating employees, productivity

About Lindsey Perkins Wade

Lindsey Perkins Wade is managing editor of The Private Business Owner.

The Private Business Owner – A Generational Equity Blog

The Private Business Owner is an online publication sponsored by Generational Equity. PBO aims to provide useful tips and information that will improve both the lives and businesses of entrepreneurs, as well as provide valuable insight into the company exit process through bi-weekly M&A Digests.
  • Learn more about Generational Equity

Set Yourself Up For Success

To help business owners become more informed, we've created free, valuable whitepapers to help you as you embark on your jouney.

Start learning today!

  • How To A Build A "Buyer Ready" Business
  • 5 Common Mistakes To Avoid When Selling A Business
  • Uncover Why Investors Are Motivated To Buy Your Business
  • Exit Planning Basics: What You Need To Know Before You Start
  • Everything You Need To Know About The Evaluation
  • How To Find Buyers For Your Business
  • Unlock the 4 Secrets To A Successful Business Sale
  • Ultimate Glossary of Must-Know Terms If You're Selling A Business
  • Acquisition Case Study of Johnston Enterprises: A Novel Split Pays Off

© 2023 Generational Equity. All rights reserved.      General Disclaimer / Privacy Policy     

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.