Money Resolutions: Five Commandments of Working in a Family Business

business, man, woman, transaction, deal

Whether it’s a couple working together or a large family count like the Weasleys, it’s a rollercoaster when engaged in a business venture. You must consider a lot as you have to make sacrifices to keep things running smoothly. You must think of the children, other family members under your wing as well as yourselves to ensure familial ties are still intact. Owning a business is a professional and legal matter. Hence, it puts pressure on relationships and other aspects of your lifestyle.

It doesn’t matter if it’s a family business to from home in Cavite. Making the family business work in the city or the quiet suburbs such as Vermosa requires a set of values or conduct to follow. Establishing a few rules is a benefit. It places things in order and helps all parties involved understand the essence of running an enterprise.

Below are some notes on building your code of conduct for the family business.

1. Discuss the meaning of risk.

newspaper, business, news, reading, man, sitting, socks, red socks

Each person has their levels of risk. One of you is willing to go all in while the other may not fancy the idea. Thus, it’s essential to talk things through before betting on anything especially when dealing with a third-party contractor or partner. As much as possible, be financially secure. Operating a business makes you liable for its operation and damages. Expect costs and forecasts expenses that will arise from the venture before reaping the profit.

Thus, you must open the idea of calculated risk. This type of risk requires brainstorming and planning sessions before the execution. Being in business an entrepreneur like being a soldier at war. The goal is to survive. You must have enough ammunition and tactics to overthrow the enemy. Hence, it pays to be observant and smart before settling on your final decision.

2. Exchange ideas and be attentive to what each has to say.

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When working with others, it’s essential to open the lines of communication. Each family member must have a platform to converse. You can transmit short and urgent patches of information through instant messaging or e-mail. If anyone has to reach out to a client, it must be sent via e-mail. Calls are still highly recommended, especially for lengthy conversations.

If you have to review a proposal, discuss issues, and check up on any of your family members, you must do it face-to-face. You must deal with personal exchanges in person. That way, you can covey the right emotions without being misunderstood. If you are playing the opposite role, listen to what the other person has to say. Butting in a conversation is unprofessional. Allowing the person to release what he or she has to say minimizes the chance of silencing or canceling the other person.

3. Separate personal and business affairs.

angry, frown, angry face, angry board

If you have disagreements at home, don’t bring them to your workplace. Keep personal affairs at bay until you reach your sanctuary or house and lot. If your partner, husband or wife, commits a mistake, try not to become emotionally involved. Don’t make a big deal out of it especially if it doesn’t have any bearing on your business operation.

Whenever you feel the pressured, try not to lash out at someone. Avoid reminding the person of past mistakes as it won’t help you progress. Instead, recall why you started the venture. The business exists to improve the quality of life. Try to put this in mind instead of thinking about the negative things clouding your mind.

4. Teach each member the value of responsibility.

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Rome wasn’t built in a day, and the same is accurate for your company. You or your ancestors invested time and effort to bring it to where it is now. Similar to a plant, the business needed watering and maintenance of everyone. Thus, it must not be passed on or handed out without *precaution. Train the young ones on how the business operates. Teach them how to earn their keep so they won’t take the hard work of others for granted. That way, they recognize the essence of responsibility, modesty, and camaraderie.

5. Recognize your area of contribution.

team, working together, papers, teaching, feedback

Figure out which aspect of the company operations suit your skills and knowledge. Do you have a knack for dealing with people and hold conversations for a long time? Do you know how to analyze and income statement? Does your heart leap whenever there are sheets of data in front of you?

These are sample questions that reveal your core competence. The core competence will answer the needs of the business whether it’s in or out of the company. Once you have your area of focus on lockdown, stick to it and leave the rest of the operations to other people. It minimizes the incidents of micromanagement and unnecessary conflict.

As much as you can, follow the commandments you set for your family. Doing so builds character and trains each one to be responsible towards their acts. When you focus on your role instead of minding others’ business, you contribute to the growth of your calculated risk. Investing in a business venture is risky and leads to rocky roads so family members must stick through these times.

 


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