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Family business? Avoid the traps!

Family business? Avoid the traps!

07/13/2023
The idea of a family business sounds great at first, but unfortunately it can have many pitfalls if you don't know what to look out for. In such a situation, it's easy to work much more than is normal and expect the same of others, to share tasks unevenly and to let work creep into every moment of your day.

The idea of a family business sounds great at first, but unfortunately it can have many pitfalls if you don't know what to look out for. In such a situation, it's easy to work much more than is normal and expect the same of others, to share tasks unevenly and to let work creep into every moment of your day.

Fortunately, this does not necessarily have to be the case. With a little awareness, you can build a family business without upsetting the delicate work-life balance.

What causes the imbalance?

For most businesses, it is true that it takes a lot of work and sacrifice in the beginning. In a family business, the extra motivation is that everyone feels ownership of the business, so everyone tries to do their best to make it work. But this can quickly lead to chaos and burnout.

To avoid this, you'll need a few rules:

  • Let there be boundaries! Let not every conversation, every thought, be about business! Have the time and space to discuss the topic, but don't force the issue. Of course, it's not forbidden to exchange a few sentences about something topical, but don't let work permeate your everyday life.
  • Let everyone play their part! In a family business, it is common that everyone does everything. This can be very useful in the context of being able to replace each other when needed, but it's not good in the sense that no one really knows what they're doing, everyone is getting involved, so information can get lost, processes can get stuck and chaos can quickly ensue. It's good to have a role for everyone, and it's also good to define in advance who can replace who if necessary.
  • Don't bury conflicts! Just as work can interfere with family life if you're not careful, family relationships also can interfere with work and make it difficult to resolve disputes. Every family has its dominant people, but it's by no means certain that these same people will be the most productive in business - but can the others stand up to them enough on business issues, or will they accept their rightness as usual? Obviously, the latter will eventually have a detrimental effect on your business, but these patterns are harder to discard than you might think.
  • Do not employ incompetent people! Just look around: how many times do you see a relative with no relevant qualifications or experience being hired as a favour to the family company, who at best does nothing and at worst even damages the company? It is very difficult to say no to family, but let's separate work and private life as much as possible!
  • Have  succession plan! We don't like to think about it, but we have to: no one lives forever, and we have seen many family businesses that were previously well run go under in the struggle to decide who will take over. Everything is so much simpler when it is laid down in advance.

The family business is unstable ground: it is very difficult to run it without damaging the company or family relationships. The only way to do this effectively is to have rules in place from the start that everyone sticks to. Learn from others' mistakes, avoid the typical pitfalls and you can build a truly valuable family business!

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