September 8, 2015

The foundation of a healthy family business is in adopting and using standard policies and procedures that help to avoid the informal setting that many family companies might be tempted to default to. When business and ownership interests overlap with family relationships, conflict is naturally more likely to emerge. 

One of the keys to handling this successfully is to keep clarity: no family should be on the payroll for the company unless his or her role is clearly defined. No double standards should exist about the way that family members versus unrelated employees are treated. Just as family members should not be given preferential treatment, they should also not be abused simply because of their status as a relative, either. Communication throughout the company should remain consistent.

Ensure that the line between family and business is clear. Boundaries should be established in written format and should be reviewed regularly to make sure that everyone is on the same page. Learn more about family business succession planning tips by staying tuned to our blog.