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Family Business Management Programme 2020

Wednesday, 04 March 2020

The Family Business National Centre of Excellence is inviting business founders, next generation managers and those with an interest in learning how

 

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Growing a family business - LEO Enterprise Week BOI Workbench Centre Fri 6th March 8am

Wednesday, 04 March 2020

Phil Cone of Acadeny Crests Ltd and Michael Finn NSG Ltd will be interviewed by JJ O'Connell of Family Business Ireland to discuss their growth

 

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Growing a family business - LEO Enterprise Week BOI Workbench Centre Fri 6th March 8am

Wednesday, 04 March 2020

Phil Cone of Acadeny Crests Ltd and Michael Finn NSG Ltd will be interviewed by JJ O'Connell of Family Business Ireland to discuss their growth

 

Read more

For many family businesses, retaining family ownership and control is a prime objective. However, it may limit growth potential. Passing the business on to the next generation can be very challenging and disruptive. These tips are key to remain successful in your family business: 

 

  • Don't always consider dealing with the family first to ensure business success. The top priority is to ensure that the business is functioning correctly and growing. If you don't take care of the business, the business can't take care of the family.

 

  • Set boundaries to limit business discussions outside working hours. Mixing business, personal and home life can lead to conflict that is detrimental to business success.

 

  • Establish weekly business meetings where personal and family matters are set aside. This helps to focus the attention on the core business objectives. A strict agenda is important in achieving productive meetings. Consideration could be given to inviting a third party, for example the company solicitor or accountant, to facilitate the meeting. If non family members present, ensure they are included and their contributions are given equal weight.

 

  • Don't provide 'sympathy' jobs for family members. It is important that each member of the family adds value to the business and worksat a level that is aligned with their skill base.
  • Define clear management reporting lines in the business and ensure that these are adhered to. I see many instances where family members feel that they can reprimand employees who do not report to them.

 

  • Clearly define each family member's role and put this in writing, such as an employment contract. This should be dealt with like any other business relationship.

 

  • Seek to ensure that family members who are looking to join the business have suitable outside experience first. This helps them to gain valuable knowledge of how business works outside the family business environment and bring new insights and ideas when they join.

 

  • Be open-minded about seeking outside advice. Family businesses at times can be too closed and seeking outside advice can help to bring fresh ideas and facilitate creative thinking. Outside facilitators can also help to make the working relationships of family members more productive. Non-executive directors can provide a fresh view and outlook.

 

  • Treat family members fairly. Family members tend to have an affiliation and affection for the business. This means that they have an energy and enthusiasm for the success of the business that previous generations have spent years building. It is important, though, to ensure that there is no favouritism. Pay levels, progression, expectations, criticism and praise should be even-handed across family and non-family employees. Remember not to set standards higher or lower for family members than for other members of staff.

 

  • Understand the advantages of family ownership and use them as a positive in marketing. Customers are very often drawn to using family businesses because of their culture and togetherness.

 

Careful planning will allow you to identify and address any potential problems in advance. Options include an appropriate shareholders agreement, clauses in the company's articles of association and the use of a family trust to hold shares. Above all, open communication can help the family resolve any issues and ensure that the family business will prosper for many generations.

 

Source:

http://www.smallbusiness.co.uk/running-a-business/business-management/2478377/tips-for-running-a-successful-family-business.thtml