Nextiva Tuesday Tip: 5 Keys to Success in a Family Business

Stocksy_txp9b4a083fTr5000_Small_64619Did you know that 70 percent of family businesses never make it to the second generation? How can you avoid your family business becoming that kind of sad statistic? The key to keeping a family business surviving—and thriving—is communication. Here are five keys to good communication in your family-owned business.

  1. Pay attention. Is someone making a lot of bitter comments, showing up to work late (or not at all), or otherwise acting out? Keeping your eyes and ears open to what’s going on around you can nip communication problems in the bud.
  2. Address issues openly. Rightly or wrongly, many families “communicate” (or don’t) by sweeping things under the rug or denying that problems exist. When this kind of miscommunication infects the workplace, it can destroy your business. No matter how tough it is, make it a point to bring up problems before they fester.
  3. Keep it all in the family. Family business conflicts should be addressed openly, but that doesn’t mean they should be discussed in front of non-family employees. Call a family meeting or hold a one-on-one with the individual involved to hash out the problem before you involve non-family workers.
  4. Never assume. Because people are family, you may assume they will respond to things in certain ways or assign certain behaviors to them. (“Susan always gets offended by little things.”) Try to get beyond the “roles” that siblings, parents or other family members play in the family (the smart one, the peacemaker) and focus on the roles they play in the business. Give your family employees the same respect you’d give non-family employees and don’t attribute feelings to them without actually asking them how they’re feeling and what they’re thinking.
  5. Air the grievances. Let each family member get their feelings out in the open, even if you feel that one person is obviously right and the other wrong. An outside advisor, such as a family business consultant, your board of advisors or even a family therapist, can be helpful in mediating family business issues impartially. (It’s important, though, to make sure all family business members agree on who the outside advisor/s should be—ideally, before any problems arise.)
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