Family businesses can be both a satisfying and frustrating experience. Undertaking with your siblings, uncles or parents can make things easier but also more complicated, especially if they do not have business experience or tools such as professional preparation or business experience. However, this is completely common and any starting point is valid.
The first step to clearing your fears and growing your family business is to be well informed. For example, sometimes one of the first impediments is being strapped with money and being afraid to ask for a loan, which can be much easier if you use a business loan calculator, a tool that allows you to know how much you should ask and how much you will pay. Click here and do the math right now.
If you want to make your family business grow, follow these tips.
1. Separate the Company from the Family
You have to understand that work matters are different from family life. If everyone works together, the goal should be to improve the business day after day, and not be distracted by external conflicts that have nothing to do with work.
Although family relationships can facilitate the work dynamics and make it more pleasant, this should not be an excuse to make consents or exceptions with respect to the rules and regulations of the company. Treat each other like family but respect each other as workers.
2. Make Decisions Together
If it is a family business, you should take into account the opinions of the members and reach a consensus, even when there are opinions in disagreement. This is very important especially in crucial moments such as when deciding to ask for a loan.
If there are members who are not completely satisfied with the decision, they must evaluate the pros and cons and clear up any doubts. In this case, using a business loan calculator can help increase the confidence of those who disagree and review whether it is a feasible decision or not.
3. Establish Responsibilities
It may seem obvious, but trust between family members may be conducive to not establishing an order of responsibilities, and it may be that some members feel that they have to take care of everything or that some are not clear about what they should do.
To move the family business forward, they must establish the occupations and positions of each one, so that everyone knows what to take care of and there will be no delays or neglected areas.
4. Take Care of the Money
Many times the family business can be seen as the perfect source for funding member projects, but you must be strict about how you will use the profits. If you use it a lot for personal reasons, this can embezzle the capital and cause the business to go bankrupt. Keep track of expenses, set savings goals, use a business loan calculator when needed, and don’t go overboard on expenses or loans.
5. Set Goals
Having goals is what will keep you moving. If they know where to aim, they will all move in the same direction and they will know what to work towards. These goals can be to achieve a certain level of profit, expand the business, hire people outside the family, buy certain equipment or tools, among others. All goals should be focused on growing the family business and in some way should also improve the well-being of its members.
Working With Your Family Doesn’t Have to Be Unpleasant
It can actually make things easier, as long as everyone understands that family and work matters must remain separate, that they must have an organizational structure, and that they must work together to achieve their goals.
Gather those family members who work alongside you and review the tips on this list. Are they complying with all the tips or just some? Examine where you can improve and what you can change, and your business will surely take the impulse to continue growing.