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Common Threats To Family Businesses And How To Avoid Them - Business -

Every business is faced with challenges. However, as a family business owner, you are faced with unique threats to your business that if you do not recognize and address them quickly, it will drastically affect your success in the market place. Here are five common threats that every family business faces and tips on how to manage them.

Family Feuding: Family businesses are faced with internal conflict that typically arises from the inability to separate your business and personal lives. Sometimes, the feuding is due to the varied interest of each family member, personal egos or personal rivalries that spill into the business environment.

Regardless of the cause, if feuding is not permanently curbed it will be totally impossible to achieve the primary goals of the organization and this will in turn increase the labour turnover of the organization due to its hostile working environment.

Nepotism: Managing a family business is a delicate matter, it is important to be aware that the fastest way to alienate the people that work for you is to is to create a company culture based on nepotism. Everyone wants to help out their family, but hiring and promoting based on a ‘family relationship’ rather than actual merits and abilities, is a very good recipe of disaster.

You will quickly find that non-family employees will lose the motivation and desire to work for you. Family employees may become complacent because they will not face consequences for non-performance and this will end up making you bottom line to suffer

Letting Emotions Run the Business: Separating your emotions from the business is not an easy task, especially when you are directly managing a family member. As we all know it is quite difficult to receive critical feedback from the people that we love.

Be aware that if you let emotions interfere with your business, it can make you appear weak to your employees and customers, and severely affect your ability to make sound business decisions. On the contrary, if you are insensitive, you may appear cold. This lack of sensitivity can even cause great problems at home, so a balance of emotions to be expressed at home and at work must be made.

Losing Non-Family Employees: there are two main reasons non-family employees will leave and they are limited growth opportunities and family conflict. Most employees want to advance within a company but unfortunately, the family members will have seized every advancement opportunity and leaving none to non-family members. Another problem is that non-family employees will leave because they feel as if they are always in the middle when a family feud breaks out.

As a business owner, you need to realize that every business needs a good mix of people to help you achieve your primary goals. Non-family employees add balance to the business from an unemotional position and the family members from an emotional position. If given the opportunity, non-family members can offer valuable input on how to make the company better one.

No Plan of Succession: There is going to come a time when someone retires or perhaps passes away. If you do not have a plan, you are setting your business up for failure immediately after your departure.

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Common Threats To Family Businesses And How To Avoid Them - Business -

Every business is faced with challenges. However, as a family business owner, you are faced with unique threats to your business that if you do not recognize and address them quickly, it will drastically affect your success in the market place. Here are five common threats that every family business faces and tips on how to manage them.

Family Feuding: Family businesses are faced with internal conflict that typically arises from the inability to separate your business and personal lives. Sometimes, the feuding is due to the varied interest of each family member, personal egos or personal rivalries that spill into the business environment.

Regardless of the cause, if feuding is not permanently curbed it will be totally impossible to achieve the primary goals of the organization and this will in turn increase the labour turnover of the organization due to its hostile working environment.

Nepotism: Managing a family business is a delicate matter, it is important to be aware that the fastest way to alienate the people that work for you is to is to create a company culture based on nepotism. Everyone wants to help out their family, but hiring and promoting based on a ‘family relationship’ rather than actual merits and abilities, is a very good recipe of disaster.

You will quickly find that non-family employees will lose the motivation and desire to work for you. Family employees may become complacent because they will not face consequences for non-performance and this will end up making you bottom line to suffer

Letting Emotions Run the Business: Separating your emotions from the business is not an easy task, especially when you are directly managing a family member. As we all know it is quite difficult to receive critical feedback from the people that we love.

Be aware that if you let emotions interfere with your business, it can make you appear weak to your employees and customers, and severely affect your ability to make sound business decisions. On the contrary, if you are insensitive, you may appear cold. This lack of sensitivity can even cause great problems at home, so a balance of emotions to be expressed at home and at work must be made.

Losing Non-Family Employees: there are two main reasons non-family employees will leave and they are limited growth opportunities and family conflict. Most employees want to advance within a company but unfortunately, the family members will have seized every advancement opportunity and leaving none to non-family members. Another problem is that non-family employees will leave because they feel as if they are always in the middle when a family feud breaks out.

As a business owner, you need to realize that every business needs a good mix of people to help you achieve your primary goals. Non-family employees add balance to the business from an unemotional position and the family members from an emotional position. If given the opportunity, non-family members can offer valuable input on how to make the company better one.

No Plan of Succession: There is going to come a time when someone retires or perhaps passes away. If you do not have a plan, you are setting your business up for failure immediately after your departure.

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