Making Decisions Based on Facts.
It is not easy for family-owned businesses to make decisions based on FACT and not FEELINGS. One way to maintain transparency is to seek the guidance of an external viewpoint in a consultant or advisory board member.
While family members may not always have the same opinions, they often have similar upbringing and life experiences which may lead to a uniform view of the business. Businesses need to have external views of their company and their competition in order to thrive.
Leading a multigenerational family business can be complicated, and knowing who you can turn to for support, experience and knowhow can be tricky. Making use of expertise from outside the family can provide a greater depth of knowledge and experience, resulting in better decision-making.
At some stage, the business will grow to a point where the family members don't have the skills or experience to manage the additional complexity, and it's time to bring in outside expertise such as accounting, finance, or human resources. Otherwise, it will be challenging to take the business to the next level.
SUGGESTIONS:
Charter a board of advisers. Bringing in outside representation can offer an objective look at the business. Board members can provide valuable insights that can help you re-evaluate the business plan and prioritize areas that need improvement. This approach to family business governance has proven to be effective for a healthy, long-lived family business that will remain true to its mission and family values.
Establishing a dispute resolution process and enlisting the help of a business adviser can help to mediate and address any difference between family business owners. Every family member, even if they are not working in the business, should agree to the plan. It is best to have a dispute resolution process in place when there is peace in the family then try and establish one when there is conflict. Think ahead and plan for everything.
Hire a business consultant. Because the family owners and employees are emotionally immersed in the business, it is hard to be clear what the root cause of issues or where the holes in the processes are. A business consultant acts as a fresh pair of eyes on your business as well as has the expertise to quickly get your business growing and building a lasting legacy. There are many business consultants that specialize in the unique nuances and challenges facing family-owned businesses such as Lovelynn Ivey Consulting. It is best to find a consultant that understands your family values and fits with your business culture, and once you do, get started right away creating processes and plans that will guide your company to a strong and lasting Legacy!
