This is one of the toughest challenges faced by many companies.
There are casualties everywhere and the stakes could not be higher: the company provides a living for you and your family and for the families of your employees. But maybe, more importantly, your family relationships are the ones that will last forever if you invest in them. It requires a very structured and transparent environment.
1. Make sure everyone in the family knows where you are going as a business. Give everyone the same ultimate objective.
2. Make sure all family members have a very well-defined job description and a well-defined and facilitated “growth” plan (training and opportunity).
3. Pay an “honest days wage for an honest day's work.” You cannot facilitate mediocrity. Make sure your family members know that they have to work 25% harder than others to ensure others don’t say they are getting away with murder because they are a relative.
4. Create a “conflict resolution” procedure for the family. There has to be an open door policy but for family members, there has to be more patience and explanation for your actions and their actions. You cannot rebuke in public and praise has to be very carefully doled out in public.
5. Communicate gratitude for each other. If you don’t think the family member does anything you are grateful for, encourage him or her to find other “better paying” better “opportunities.”
Being in business with your siblings is tough. About as tough as growing up with them! Keep open communication with them, spend time with them away from the shop, and “choose” to build something “together.”
6. Work on compiling a succession plan including buy-sell agreements. A succession plan allows you to plan who takes over and how they compensate you for your equity. A buy-sell agreement allows for the business to go on after you die.
Being in business with your siblings is tough. About as tough as growing up with them! Keep open communication with them, spend time with them away from the shop, and “choose” to build something “together.” You have to overlook weaknesses and encourage each other to use strengths. Realize it takes all the functions, including admin, to run the company. Be very business-like in figuring compensation. Try to keep business issues away from spouses of your siblings that do not work for you. Business is business and family business is family business. If one family gets a new car it is inevitable that one of the spouses will raise questions about why they cannot afford one. Deal with this proactively with an agreement of support of each other in conversations like this.
I will always be “Dad” to my kids. There is no bigger responsibility than being “Dad” or “Mom.” If you want your business to succeed enough to provide a living for your kids or extended family, work hard to separate your roles without harming your relationship by creating a business atmosphere at the shop. If you can’t, encourage your family to find opportunities elsewhere and leave them a legacy that way.
