Top 10 tips for family business
Thursday, Jan 15, 2015
Here are the top 10 tips for family businesses (via Australian Small Business Commissioner):
- Leave work at work and home at home.
- Have clearly assigned roles for each family member to avoid feelings of being taken for granted, over-worked or under-utilised.
- Pay the market rate — remunerate the job and not the person.
- Develop a strong, capable management structure — don’t confuse ownership or inheritance with management.
- Have clear, consistent communication — both good and bad news must be shared.
- Clearly define entry and exit criteria for family members before an event occurs.
- Develop a succession plan and ensure it is endorsed by interested parties — a communicated process rather than sudden event.
- Use outside advisers who can provide unbiased, objective advice — preferably accredited, family business advisers.
- Hold regular communication sessions and family ”retreats” — the best results are those facilitated by a third party.
- Use external advisers, sounding board, mentors and family business forum groups.