Family Business Exit Strategy
23 Jun 2022
Family Business Advisor
Going into business with family members can be incredibly gratifying and enjoyable. However, it's not without its challenges - and they can escalate into major conflicts if not handled quickly and in a professional manner. While such conflicts are to be expected in family business, they shouldn't become the norm. Here's how to resolve conflict and the mistakes you should avoid to ensure successful working relationships with family members.
How To Resolve Family Business Conflicts & Avoid Mistakes
Ongoing Communication Is Key In Business
Discussing issues when they first arise will help prevent bigger problems later on. Allow family members time and space to speak up about grievances - and listen without judging. A formal setting will stop meetings from descending into heated family arguments.
How To Set Healthy Family Business Boundaries
Healthy boundaries should be set between work and play. Failure to separate business time and downtime will result in tension, conflict and resentment among your team. Allow family members to take time out and fulfil their duties at home with their spouses and children.
Family business conflict resolution is about agreeing clear boundaries, setting a clear long term strategic plan for the business that all key members agree with, plus agreeing individual roles, objectives and goals for each key member.
Regular updates, meeting and confirmation of the vision of the business together with monthly financial reviews are key elements to a clear and open business plan, that every major shareholder in the business can understand, agree with and help with finances when needed.
In short keep family business activities Transparent, Fair And Focused on actions that boosts all members.
- Define each persons role
- Confirm job titles
- Agree job functions and activities - short and long term
- Agree salary structures
- Set performance reviews
- Set KPIs and individual professional goals
- Agree the vision / plan for the business
- Talk about the long term strategy for the business or growth plan
- Set boundaries
Family business issues, can occur when there is no formal management structure or style to the running of a private business.
Businesses salary structures should be kept fair, with a percentage based on the companies overall ongoing profit, and based on a yearly performance review.
Finding A Family Business Advisor To Help And Advise
- and That's OK
Many family businesses fail to put in place formal processes for the mediation of disputes. When conflict can't be resolved internally, it's helpful to bring in an expert; an objective voice who is trained to resolve business disputes. Without this objective viewpoint, emotions will run high during discussions and cloud your focus. A trained "outsider" can help guide you to a final resolution that's fair for all team members.
I offer specialist family business guidance that is beneficial in all aspects of your business,
not just in conflict situations. If conflict is hampering your firm's growth and day-to-day operations, I'll work to understand the source of the issue and offer practical solutions in a non-judgemental way.
Get in touch to find out more about how I can help your family business exit strategy or business conflict resolution.
Family Business Exit Strategy
Kieran Perry is a trusted business advisor and sales coach working in London, offering business coaching, sales training, executive mentoring, and management consultancy to clients across the UK and Ireland.
He has a proven track record of helping businesses of all sizes and industries achieve their goals. Kieran shares his insights and strategies for success through his blog and offers sales training courses to improve sales skills and techniques.
For those seeking business advisors, Kieran Perry is an excellent choice with online coaching and training sessions available. Follow him on Instagram to learn more about his services.
His services include independent business advice, business coaching, sales training, executive mentoring and management consultancy to business owners, directors, start-ups and individuals across the UK and online. To read more on his business advice view his Blog for more business strategies, or see his Pricing, or Reviews . Follow Kieran on Instagram.