Business and family should go hand in hand like coffee and cream, right? After all, family equals loyalty, and loyalty is the foundation of any good, lasting business partnership. However, reality, in this case, is counterintuitive: family-owned businesses actually tend to be rife with problems due to conflict between family members. In one university survey, 52 of 59 family members reported tension and stress in their family-business relationships.
If you are part of a family-owned business, then you are probably familiar with the unique and difficult problems that are generally not found in other closely held businesses. Yet, you have the drive to persist – not only do you want to save your family business from collapsing due to internal conflicts, but you also want to take it to the next level. What is the secret? Well …
- First, you have to get on the same page. To prevent contentious disputes, plan in advance for the inevitable problems that will arise. Meet with all family members in the business and discuss everyone’s roles and responsibilities as well as their expectations with respect to job performance. Also, draw a clear line between family and business relationships and make sure everyone understands the distinction.
- Have an outside advisory board resolve disputes between family members. The board should be comprised of individuals nominated by each family member in the business, with the condition that a representative may not be another family member. Generally, disputes are more easily resolved when outside perspectives are included.
- Consult with an experienced business lawyer. The right family business attorney can work wonders in mediating a potentially destructive dispute.
There’s nothing worse than being embroiled in a business-related dispute with family, but there’s nothing better than when a family-owned business finds harmony and success. You can achieve the dream with the ones you love with help from the NY business attorneys at The Internicola Law Firm, P.C. Just dial (718) 979-8688 to receive reliable counsel from one of our dedicated legal team members. You won’t regret it.