The Top Five challenges facing a family business

But, just as today’s families are becoming more and more complex and extended, also, there is a whole host of challenges facing family businesses in 2017.
To help you get to grips with successfully operating a family business — and keeping everybody happy — we have put together a record of our Top Five challenges that confront today’s family business and how to cope with them.

The Top Five challenges facing a family business

Best match for the job

In a family business, there’s the urge to give everybody a specific function so that everyone is treated equally. The problem is that in business, not everyone is equally capable: some are better at certain things than others.

To achieve best company results, family businesses need to make sure that the best individuals are set up for each job — whether or not these people are in the household.The Top Five challenges facing a family business.

While there can be benefits to several family members using an overall comprehension of various facetts of running the company, it is also vital to make sure that each family member is a perfect match for the particular job that they are supposed to do. Merely creating positions for family members or committing tasks which don’t fit their abilities frequently backfires.The Top Five challenges facing a family business.

This can become even more complex because once somebody is used to do a project, it can be very tricky to move them from it — both regarding the legal side of things and the household emotions involved. Much better to set strict recruitment criteria beforehand for each job in the company and be sure that only the best applicants — whether family or not — are believed.The Top Five challenges facing a family business.

Honest and consistent policies

In a family business, it’s also imperative to be clear about the plans of the company the that employees will need to stick to. It is essential to develop thorough employment policies which everybody understands and accepts as part of the terms and conditions of employment. These systems must cover every aspect of work, for example, behavior and performance standards against which workers will be evaluated once employed.The Top Five challenges facing a family business.

Having clear policies will help to eliminate misunderstanding or assumptions about family involvement in the business and clarify the qualifications that family members need to be considered for job or leadership functions within the company. Such policies also bring consistency and make sure that everything is reasonable for all family members and even for non-family members.

Compartmentalisation of household and Company

Closely linked to fairness, compartmentalization is your ability to separate out the business you can read full article here