How To Make Make A Family Business Work
By Max Kleynburd
From the "You're the Boss" Section of The New York Times
As Accountants and Financial Advisors, my team and I work with a variety of family-owned businesses. From experience, I’ve learned the importance of helping small business owners understand the benefits of operating their companies purely from the entrepreneurial stand point.
Needless to say we’re all passionate about our businesses and have a great deal of attachment and dedication to what we do. But by the same token, it’s important to maintain an objective perspective on both your operation as well as the marketplace around you.
Family ownership, often, can be an added external force that may hinder the viability and growth of the business.
It helps a great deal to establish clear workplace roles as well as boundaries, and to create concrete operating benchmarks and objectives. This will ensure that the company’s goals and vision are the driving force and help reduce familial disagreements.
Yes, it might be nice for your children to take over the operation one day - but what’s best for the business? What will provide you with the maximum return on your investment? What will result in the greatest yield from your hard work?
Keeping those questions in the back of your mind can create a clear and undeterred vision as well as create accountability from the family members involved in the business.