Allison MacKenzie Associate, Will Wagner Explores the Challenges of Running a Family-owned Businesses
Running a family-owned business can present both advantages and disadvantages while competing in the marketplace. Family dynamics in a business can add complexity to operations that competitors may not be burdened with. However, the personal and financial payoff can be immense for businesses that overcome common obstacles and pitfalls of working with family members.
Practical and legal suggestions for successfully operating a family-owned business include
While family-owned businesses often begin as a hobby or an idea among family members, as the business grows, it is imperative to create a legal structure to operate efficiently. Be sure to establish yours by creating an entity, registering with the Secretary of State’s Office, establishing separate bank accounts, and developing a business plan.
Establishing Clear Roles:
Make these roles as “official” as possible by creating titles and providing business cards. It would be prudent to require a family member to sign the same employment agreement that non-family employees sign, and subject family members to the same performance reviews as non-family employees.
Balancing Family vs Work Time:
Establish clear working hours and keep some family activities work free.
Creating a Succession Plan:
Plan ahead and have an exit strategy.
Read the complete article at: Northern Nevada Business Weekly