Starting a business with your family may sound like a fun thing, but the facts are not always the case. Precisely this has more pressure considering that if there are problems, family relationships can also be tenuous. For this reason, many people are hesitant to start a business with their family because of these fears.
Well, for those of you who are currently considering starting a family business. There are several things that need to be considered so that the business runs smoothly and successfully. Here are some important considerations to think about before starting a family business.
1. Hold Firm to Business Principles Stay in Business
Sometimes the problem of “uncomfortable” or “embarrassed” will be the biggest obstacle when running a business with family. To avoid this, try to hold on to the mindset that business is business.
Business problems and family problems must be separated considering the two are different matters. Never bring family problems into the realm of business, and vice versa.
Always try to act professional, don’t make it more special, act normal like a normal business partner.
2. Someone Has To Make The Final Decision
The next consideration is that someone should be appointed to make the final decision. Considering that this business is managed by more than 1 person, sometimes there will be debates due to different decisions.
This is where the role of the final decision maker is needed as a determinant. The person selected as the final decision maker must be the most competent person. He must also be able to take responsibility for every decision he has made, so make sure to choose the right person!
3. Don’t Expect Too High
The next consideration is to try to manage expectations, this is a source of disappointment which ultimately makes the relationship with the family tenuous.
When doing business, it is very natural for business partners to have different commitments or thoughts that are not in line. Not to mention other people with families, their thoughts can be different, even though they both have the same goal.
We really shouldn’t get our hopes up if other families have the same strong commitment. At the beginning of running a business, maybe everyone will be more excited, but over time, some people can change and their enthusiasm starts to decline. So, don’t have excessive expectations, the most important thing is to prioritize professionalism.
4. Make a Business Plan
Before starting a family business, be sure to make a thorough and structured business plan. Make a list of the type of business you want to run, target market, required capital, and marketing plans and other business strategies.
With good business planning, a family business will have a clear and well-planned direction. Even in its implementation, try to be in accordance with the plans made beforehand. In other words, make this business plan a guideline and determinant of policy direction.
5. Set a clear organizational structure
Family businesses usually have a different organizational structure from businesses run by individuals or companies. Therefore, it is very important to manage the family business organizational structure properly in order to avoid problems in the long term.
Make sure the roles and responsibilities of each family member involved in the business are clear, such as a decision-making system to a succession plan. Do not let later because there is no clear structure, avoidance of responsibility or jockeying for positions occurs.
6. Maintain Professionalism
This one point of consideration does have a very close connection with the first point, where business is business. Family businesses are often seen as unprofessional businesses because of family relationships in them.
However, as a family entrepreneur, you must be able to separate family and business relationships. So that the family business can run well and professionally. Make sure to put quality first and show good business ethics in every decision you make.
7. Try to avoid family conflicts
Family businesses often face internal conflicts that can affect business performance. Therefore, make sure you have a mechanism to handle conflicts that arise in a good and professional way.
Don’t let family conflicts hinder family business performance. On the other hand, you also need to consider that doing business with your family can also trigger serious conflicts.
In fact, this conflict can tear the family apart and become a permanent problem that is difficult to overcome. This problem is not something that is surprising anymore, considering this has happened a lot.
For someone who really wants to maintain a harmonious family relationship, this will of course be the most important and the toughest consideration. So, make sure before starting a business with your family, you are ready to face this one risk.