A Look At The Best Family Business Practice

The family businesses, small or large, are present in and around us; yet it is one of the most overlooked form of business ownership. As the business and the family grows, the challenges faced by the family business organisation increase manifolds. The family business organisations need to achieve the enhanced business performances keeping the family members committed to the growth of the organisation along with maintaining harmonious relationships within the family. Here we unveil some of the best family business practices which can help a family business grow. Take a look:

· A Well Defined Structure For Decision Making

Absence of a well laid decision making structure often creates conflicts amongst the family members in the organisation as everyone thinks he/she is the best decision maker. An effective decision plan and chain of command can reduce the level of conflict in this situation. Someone should be identified for the final decision making to ensure proper decisions are made instead of arguments.

· Identify Role Of Every Member

Often family businesses are infected with the problem of giving job roles without understanding the skill set of the individuals and investing properly in their skills. The role of each and every family person should be identified in connection with the interest and skills the person possesses and thus this way they can be made responsible for what they can do the best.

· Board of Directors

It is advisable to the family business organisations to formulate a Board of Directors which comprises of Accountants, Lawyers and other individuals of repute. The reason for formulating a board is to have a constant guidance of persons having knowledge of diverse fields. Their feedback about the direction of the company can be used for framing future plans and objectives for the company. Also, they can review the business on quarterly, half yearly and yearly basis, and bring any wrong practice going in the business firm to the table.

· Transition Plan For Next Generation

The family businesses are passed on from one generation to another and thus it becomes the responsibility of the present generation to make the transition smooth. For this, the next generation needs to be made understood what is expected from them and what needs to be done to take the business to new heights.