Approximately 4.8 million of the UK’s businesses are family-owned, making sure these businesses thrive requires a unique set of skills. Working with family may sound idyllic, but being together all the time can blur the lines between business and personal life and lead to conflict.
To establish a successful working relationship that does not impinge on personal time, ground rules must be set, formal dispute resolution mechanisms established, and a pledge made to always be open and honest with each other.
Most common areas of conflict
The main reason family businesses seek support from Tewkesbury business advisory services such as www.randall-payne.co.uk/services/accountancy/tewkesbury-accountants is to seek clarity on areas of conflict.
These include succession planning – developing strategies to hire and train family members to become useful additions to the business. When family members wish to join the business but there isn’t a defined role for them to fill, businesses often seek advice on growth strategies, sustainability and resilience to support expansion plans aimed at accommodating the additional family member.
It is also essential to consider the tax implications should a family member retire or withdraw from the business.
There are many conflict resolution strategies that a family business may wish to employ. The first should always be an informal and open discussion in which all parties present their concerns and points of view. It is essential that they are allowed to speak frankly and that everybody listens.
To move forward from conflict, all parties must consider the others’ points of view and work together to reach a mutually acceptable solution.
A formal dispute resolution strategy may require that problems that cannot be resolved informally be escalated and a trained mediator be engaged to support the family in overcoming their problems.
In conclusion, working with family brings a unique set of challenges; however, by setting clear boundaries and working collaboratively to deliver shared goals, it is possible to enjoy an excellent quality of life, a healthy financial income, and plenty of time with the people that you love.