business tip Archives - TAB Corporate

7 Family Business Tips from TAB Delaware’s Doug Roof

Balance Between Business Work and Family Life

TAB Facilitator/Coach, Doug Roof, shares business tips and best practices for managing the complicated relationships involved in a family business. Doug recently facilitated a meeting of five business owners, all of whom lead a business with other family members involved. They were gathered to share best (and worst) practices based on their own experiences. The discussion focused on bringing the next generation into the business, and preparing them to take the helm. Here are the most significant family business tips that emerged:

Family Business Tip #1: The next-generation family member should start out “mopping the floors”. They need to earn the respect of other employees.

Family Business Tip #2: Establish the discipline from day one of differentiating between “talking business” as employer-employee, and “talking personal” as family members.

Family Business Tip #3: A young family member in their teens entering the business, even on a part time basis, creates special challenges. Their lack of real-world work experience makes it harder for them to understand the necessary separation between family and business relationships.

Family Business Tip #4: Family member employees need exposure, over time, to all areas of the business. Ascertain whether the organization can compensate for their weaknesses and allow them to play to their strengths if and when they assume the leadership position.

Family Business Tip #5: Be willing to accept the fact that the next generation family member may not be cut out to eventually run the business.

Family Business Tip #6: You must manage your expectations, which may be distorted because you are personally close to the family member. Allow them to surprise or disappoint you, and make necessary adjustments to your expectations and plans as they do.

Family Business Tip #7: Differentiate between compensation and business ownership. Compensate based on contribution to business results. Allocate ownership based on any family considerations you deem to be fair.

Running a business is challenging; leading a family business adds another layer of complexity which only family business owners can fully appreciate. What business tips and best practices have you found helpful in managing the complicated dynamics involved in a family business?

 

Business Tips from the Top: 5 Questions to Answer Before Joining the Family Business

proud family business partners owners of a small bookstore
TAB Facilitator/Coach, Phil Spensieri, shares business tips for deciding whether or not you should join the family business. His experience with a number of family businesses has led him to believe that it takes a very special parent-child relationship to achieve success. If you’re thinking of joining your parent’s business, there are some important questions to ask yourself before making a decision.

Family Business Tip #1:   Do you have the right skill set/education?

It is important to add value to the business, not just for obvious reasons, but also to feel like you truly have earned and deserve your spot. If your skill set does not align with the business, the experience may be challenging – either because you’re not engaged (due to a lack of interest) or because you can’t grasp the work.

Family Business Tip #2:   What relationship do you have with your parents?

Critically analyze the relationship you have with your parents. Will the level of respect that is necessary in a professional setting be met? If your relationship is tumultuous outside of work, chances are that will translate in to the workplace.

Family Business Tip #3:   What type of work environment are you looking for?

If you’re looking for camaraderie amongst coworkers and equal treatment, working in the family business may not be for you. As the child of the owner, the company employees automatically see you differently, and work can even become a lonely place.

Family Business Tip #4:   What are your long-term goals?

Do you plan on staying with your family business forever? If so, do your parents plan on having you there forever? Your goals must be aligned with those of your family. If you plan on taking over the business, how long are you willing to wait? Your parent may not be ready to relinquish the business to you as soon as you think.

Family Business Tip #5:   Will you have the autonomy you want?

Are you trusted enough to make decisions and have your voice heard in a family business? It is often easier for parents to undermine the opinions and ideas of a child rather than someone they have a professional relationship with. If you’re looking to have creative ownership and freedom, you must decide whether it exists for you in your family business.

Ultimately, it can be difficult to successfully integrate yourself into the family business. Whether you’re starting from the bottom and working your way up through the organization, or moving right into the corner office, you must understand the risks that come with mixing your professional and family lives. What business tips & advice can you share for successfully involving the next generation in the family business?

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