Manage the challenges of a family business

ENTREPRENEUR

While the knowledge passed down through generations can be the business strength, family run businesses can present some unique entrepreneurial challenges including improper delegation of duties, undefined roles and responsibilities and familial relationships that pull at emotions and can cause bad business decisions.

If you are in business with your relatives, follow these tips to make your family-run business thrive.

1. Play to each family member's strengths.Calcango says establishing boundaries and having clearly defined roles, responsibilities and authority can determine whether a family business will succeed or fail. "In a family business, order is even more important than it is in any other kind of business because you have two things that pull at you constantly,"

Keep personal matters out of the business.Family members typically have insight into each other's personality and thought process that non-related business partners wouldn't have, making crossing the professional line into personal terrain tempting. While lashing out at a co-worker wouldn't have been thinkable in corporate positions, it’s easier to lose your cool when there’s personal relationship involved. Leave your emotions at the door and remember your family members are your co-workers. Do not indulge in any personal arguments at workplace. Keep personal and professional lives apart.

Be understanding of the generational divide

The generational differences can create some challenges, but Shelasky appreciates the wisdom her father brings to the business and says the old and new ways of doing things create a balance that clients find appealing.