Do you own a family business? Or are you planning to make business with a family? There are some problems that you may face running business with a family but this is some advice to solve it.
Who’s the boss ?
For a business, you need to have a leader to operate even though it is family as a staff. Parents must make decision to choose who will be responsible for running the entire business. It could be tricky issue because it will make argument among the family. But it can be handling, first step is to acknowledge that the situation exists and understand the counter-productive effect to the company. It is important to set up authority for responsible decision makers in various areas. It could prevent from the confusion about which decisions need to follow.
The outsiders also needed to help the business. The successful business need to hire outsiders because not all family members have all the experience and knowledge that the business needs. Hire the expertise from outsider and use their abilities. Give them same respect and authority as a family member in a similar position. If not, they won’t be long on the company.
Who will take over the business when current leaders retire?
This is hard decision to make. Mostly the family business inherited to their son/siblings. It is important to call a family meeting to make decision. Identify who will become leaders and effect on the business. You must give priority for business than personal issues. Maybe family scared the business will take over to non-family but you can avoid it by make an agreement.
Consult your CPA
If you don’t know what to do, just consult to Certified Public Accountants (CPA). The CPA could give advice on how to run family business and facing the problem.
Reference :- VSCPA