How to avoid conflicts in family business

 

Regarding the family business there are two points of view:

1. Relatives are not able to organize a successful and thriving business on the strength of the relations between them (trust or, on the contrary, mistrustful).

2. That family members are able to create a consistently progressive structure.

And surprisingly, both views have a solid practical confirmation.

What is the reason for the existence of two opposite answers to the same question?

Causes of failure in family business

The first situation is typical for a failed family business, is created when a family has someone involved in the business – in most cases between family members gradually begins to set to a misunderstanding. A businessman is always busy, he never has enough time for family, he is always secretive, silent and preoccupied, and as that condition turns into his lifestyle and takes a permanent nature, the situation is gradually heating up and start scandals. And then a businessman, deciding to rectify the situation and to unite the family, invites family members to join him in business. Mirsovetov believes this step is erroneous because, as a rule, from this moment on, begin a serious problem, both in personal relationships and in business. Misunderstanding does not disappear, and in addition begins to show irritation with each other (for the businessman due to the fact that his relatives are not so prompt and competent, and with relatives – what they don’t pay enough attention).

The second reason is the incompatibility between relatives in a family business – it’s the lack of business credibility in the eyes of each other. A typical proof of this are the repeated ridicule when someone from the family members decides to do business and proposes to organize a family affair. Conflicts in family biznesov this case, even if the relatives and agree to this proposal, only to watch the course of events and make sure to end the fiasco. In such situations, the relatives should be good to pre-prepare psychologically and to incline to the view on the necessity and feasibility of their craft, and only then when they are ready to voice their ideas and to offer cooperation.

The frequent fatal errors be the inability to distinguish between personal and official relations and the appointment of relatives to high positions. The absence of clear and explicit understanding that the business has its own rules and laws to which you need to listen in order to have success, leads to resentment, strife, and ultimately either to an infringement of the family, or business. The same can be said about the relatives in good positions. Taking the team on a position of responsibility relative, which does not correspond to this position experience and skills, you can further aggravate the state of Affairs, and thereby hurt the family member (because he either is guilty or believes that you are not helping him). Mirsovetov recommends that you assign a member of your family responsibilities can and by purchasing them with the necessary knowledge and experience to improve the service.

The frequent fatal errors be the inability to distinguish between personal and official relations and the appointment of relatives to high positions Very often the cause of discord in the family business become ambition and pride, but as a rule, this applies to distant relatives, as well as spouses, brothers and sisters (between parents and children such conflicts happen much less often). Ability and acumen of different people is different, it often happens that invited a relative newcomer very quickly develops new business and becoming more successful and more authoritative than inviting its founder. Over a similar situation that received skills relative opens his case and takes a part of the staff, and the relationships remain often spoiled forever.

The advantages of a family business

About the benefits of a family business can only speak when it is properly organized, successfully developed and each involved family member satisfied with their and other people’s results, i.e. in case of a successful family business.

One of the advantages of family business – the ability to attach to it their children so the first obvious advantage is that the profit is in the family of this business the maximum, respectively the family budget attached to it, comes back faster.

Properly structured relationships in business and General interest will further bring family members and increase the number of planes of their interaction.

In the family business, as a rule, no innuendo, which may come as a surprise and lead to financial losses. Family members are usually aware of their plans to each other (wedding, birth of children, etc.) that allows you to foresee and avoid possible gaps in business. Staff for hire, as a rule, such situations are silent to the last, and put before the fact, often at the most inopportune moment.

According to Mirsovetov, one of the advantages of family business – the ability to attach to him the children, ranging from middle school age. In the process of introducing them to the business of the children you teach not theoretically, but practically, using their experience and knowledge gained in a particular case. An illustrative example of the parents operates much more effective than unsubstantiated teachings and theoretical knowledge in educational institutions.

Steadily progressing and generating a regular income business can be inherited, thereby securing the future of children (if only they will continue to cause you started).

How to avoid conflicts in family business

In a family business must equally fair treatment to all employees regardless of related swatanalysis on family business, you need to think about the possible difficulties and to try to maximize to exclude them. It is desirable to develop for themselves and their relatives-colleagues clear rules and discuss them together, taking a decision unanimously. And to avoid unwanted misunderstandings need everyone to adhere to them:

The first step in the organization of the company are issued statutory documents. Depending on jointly adopted decisions concerning the rights, duties and roles of each family member in this case, it is necessary in the statutes prescribe the founders and their share in the authorized capital. This will prevent conflict in the case of a negative outcome of organized business in the division of property.

Securing each of the family members any specified position . Mirsovetov recommends to draw up job descriptions for each staff unit, which must be documented range of issues and tasks, duties and responsibilities relevant to each position. Job descriptions help to organize labor, to streamline the employment process, and limit the possibility of “harmonization of the nose in his business” of those, because of lyubopytno which often happen and serious family and work conflicts.

In addition, there should be clearly defined chain of command, so that none of the relatives did not take on any extra powers, making inappropriate comments to other employees, because such phenomena cause resentment in the team and decompose labor discipline.

Definitely need to outline and prescribe, for example, in the Protocol decision of the meeting of founders circle questions for family discussion. On a family Council should be referred all matters relating to financial side is not only the enterprise, and a family budget (business expansion, the increase of the share capital, working capital, lending, investment, participation in tenders, etc.).

To register in a domestic situation work schedule and try to stick to a certain mode of operation. Very often it is due to the absence of family and permanent failure at work there is family breakdown and conflict situations in business.

Must equally fair treatment to all employees regardless of kinship.

If your business has become more bulky scale, and you are no longer able to control his forces still advisable to retire and work by putting in its place themselves in professional terms, relative, and myself to devote more time and attention to the family.

A very important point is the involvement in the business of children is a Very important point is the involvement in the business of children. To avoid conflicts, personalities and principles of the business should be guided primarily by the interests of the child. In any case, the idea of a family business should not be imposed on you. The child has to come to do not just a business but a business founded by his parents. Moreover, interest in the nuances of entrepreneurship is necessary, since high school, and not to refuse satisfaction of curiosity regarding the theory, practice and technology development, as your business and business in General. Perhaps your child will transform you started a little business in international and recognized business.

What is a family business in Russian?

Family business: or what is good and what is bad?

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