A large percentage of the businesses are family owned. As the greatest part of America’s wealth lies with family owned businesses, which comprise 80 to 90 percent of all business enterprises in North America and 50% of the US GROSS National Product, we are in the majority. Sad to say though the survival rate is not as good. Less than one third of family owned businesses survive the transition from first to second generation ownership. But to survive the generation change we must first get through the generation we are in.
We are calling this a family business but it can just as well be extended family or dearest friends. Either of these can fall fate by not dealing with your business and relationships in a professional manner. After all, the family is the hardest business to run.
Many times as the family strives to make the business work they sacrifice the family situations. There must be a balance between business and personal life to make both survive and prosper; often people need help with this. Sometimes we are just so close to the situation that we can’t see what is happening until it is too late. The easiest way to ensure longevity is to start the business right, but most of us are deep in the business and in debt before we see there is a problem. One of the things a coach does is look at the business and the family unit from what is often referred to as a 20,000-foot view. In other words, often an outsider with the right training can zero in on the problem and see solutions better than when one is close or when panic or stress is forthcoming.
Most problems that arise basically come from a lack of communication. As with anything else the rules of the family business need to be in written form. An organizational chart is one of the best ways to do this, even if it is only for two people. This will tell who is responsible for what needs to get done. When I started my first business my chart consisted of all the branches and positions saying “ME”. As I grew I was able to change areas to others and delegate the task. One thing that needs to be remembered is that there is only one “captain” of a ship and this is the same in any business. There can be several owners and the decisions can be made among them but someone has to have the final word.
Compensation among family members is often an issue. Many times you will bring a spouse into the business when it is a start-up or “to save money”. Each person needs to receive a wage equal to the duties they provide and what it would cost to replace their services in the market area. If one does not feel like their job has value, or their value is not realized or recognized the resentment will often start.
With this being said, each need to realize it is not fun money they receive but rather so they can help with the expenses of their personal lives. At times when the balance of family financial obligations is borne by one of the spousal partners and not equally then more problems can rear its ugly head, and the relationship on both the business and the personal side can falter and failure of one or both may occur.
As you work on balance within the family you need to remember that your employees are often another family to you. You need to respect them as much as you respect your family member at work. As hard as it is for family members to work together, it is hard for people to work within a family business environment. Often it is felt that one will often choose your family over them, whether they are correct or not. The problem can also move from not just between spousal or life partners, it can also be a factor in the parent / child relationship.
Each business and each family is different but all need to work as a team to make their personal and business lives run smoothly. This often involves seeking outside help, either for the business or for the people within the business, often for both, to relieve the stress that can be overwhelming. Some need help to get to the next level. Often a referee may even be required. Do not be afraid to ask for help for any of these situations. Remember you are working with the most important people in your life on one of the largest and most important projects to you, your business.
One suggestion that often works is where the family members sit down and have a “same page” meeting to ensure that all are on the same wave length. Often the entire lean system of meetings or those as described in the book, Traction by Gabe Wickman, can also be a valuable way to move to a place of a better harmony and hopefully a higher state of happiness. No one starts a business with a plan of adding stress to their lives or to their family unit. Often these things do transpire and one is well served to take the steps to alleviate the pain. The best course of action is doing this prior to severe pain.
There are many sources for help with the Family/Relationship business, if needed. Feel free to contact me if I can provide you some of these sources.
Sheryl Isenhour, Zig Ziglar Certified Life Coach
CVC Coaching, Inc.
www.sherylisenhour.com
sheryl@sherylisenhour.com
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