Protecting Family in Business
Money, Communication, and Priorities
When family and business intersect, it creates a unique dynamic.
It's a world where trust, shared history, and common goals merge. But there's a looming challenge: money. Without the right checks and balances, money can complicate things, potentially straining the very relationships that built the business.
Family businesses aren’t limited to small corner shops.
Giants like Walmart and Ford began as family ventures. The size of the business doesn't determine its challenges; it's the relational and cohesive bonds of the family.
Running a family business is awesome (especially if you grew up in one). Everyone is unified, sharing a dream. I remember most of the ideas happening around our dinner table.
But as profits increase, so can disputes, especially when there is a transition in the business or death of the Patriarch.
This brings us to the power of communication.
Within a family business, open dialogue is even more crucial. It's essential to keep open lines of communication. Maybe someone feels their contributions are undervalued, or there are differing views on financial directions.
If there is friction, do everything to eliminate it.
Key Takeaways:
- Family > Money: Money destroys families. It also creates chaos during the transition. It is important as you are growing your business to create a plan around educating the beneficiaries about what will be passed on. If we do not teach our families about money, they will look at our businesses as a way to fund their lifestyle and not look at it as a profit center for future generations.
- Open Communication: If there is an issue, solve it fast. Do not allow time to pass while letting what you need to say go unsaid. Sometimes, the most loving thing is to communicate how you feel. I've always come out better for taking swift action here.
- Focus on Restoration: Do everything to keep your family bond strong. If a rift is created because of the business, restore the relationship first, and the problem will take care of itself.
For all entrepreneurial families, it's crucial to communicate, ensure profits don't overshadow relationships and always cherish family bonds. If you take these principles and apply them, you will have a far greater chance of ensuring family unity and legacy for years to come.
Here to Serve,
Parker Pursell | President of eQRP | LinkedIn
