Family business is a fairly common occurrence. People start their business together with relatives whom they can trust, but during the course of their business, family conflicts often arise, which lead to the destruction of good relations and the depreciation of business assets. Therefore, if people work together with their family people, then they should know how to prevent various scandals in the family. Otherwise, too much time and effort will be spent on family disassembly and clarification of relationships, rather than on business development and increase profits.
Make a decision about the initiative at the very beginning of the business
Before starting a family business, it is important to decide who will be actively engaged in conducting activities and who will be a passive participant. Usually in the family there is one leader who acts as the initiator of starting a business. It is he who must make the basic and important decisions about the work of the company.
The decision should be taken jointly, and it is advisable to draw up a formal contract. It is one person who becomes the director, so he draws up overdrafts, signs important contracts, and also decides on the possible liquidation of the company. If other family members initially distance themselves from this work, then in the future they will not try to influence the decision of the director.
Listen to every generation
Family business assumes that people of different ages participate in the process of company management. The oldest members of the family usually consider themselves the most intelligent and wise, but often it is young people who successfully manage the business, as they realize what the modern consumer needs. To avoid conflicts related to the difference in age, it is advisable to use the following tips from psychologists:
- it is recommended to plan a succession by which senior family members stop managing the company, transferring their authority to young relatives, without affecting the further activities of the company;
- one should not make a decision on how all property will be divided, as a result of which the family will lose a successful company, therefore it is advisable to act together and not try to allocate separate parts;
- Intergenerational discussions should be held regularly, since at such meetings each family member can get really effective and beneficial advice.
It is important to discuss the size of dividends of passive shareholders and the salaries of active directors. These indicators should be interdependent, since in this case all family members will not feel disadvantaged.
Check regularly
Since some family members have to abandon their active participation in the management of the company, they experience some concern about how the management of the appointed shareholders is carried out. Therefore, relatives who have abandoned managerial positions can conduct regular inspections to find out how effectively managers manage their tasks.
At the end of such inspections, meetings are held to discuss the various accomplishments of leaders or their failures. Using this method, each shareholder can influence the work of the company, while different disputes arising from the occurrence of losses are prevented.
Manage disputes effectively
It is almost impossible to completely get rid of strife and scandals, since in every family there are people who always take advantage of the opportunity for a quarrel. Therefore, from time to time, disputes will always arise between shareholders. To resolve conflicts, it is recommended to use the following recommendations:
- relatives can use different therapy, for which you need to visit a family psychologist who helps to cope with various problems;
- it is advisable to engage in meditation and apply special breathing exercises to calm down and prevent further scandals;
- smart people can take advantage of the help of independent intermediaries who will independently study the state of the company instead of shareholders, which will avoid direct conflicts;
- Before starting a business, it is advisable to draw up a special contract under which shareholders who are not involved in the management of the company, in the event of losses or other problems in the business, will be able to withdraw their part or take up management independently.
In the presence of a large family business, it is most important to constantly use the services of a psychologist. He acts as a kind of experienced intermediary between all shareholders. He will be able to listen to people's claims to each other, determine the causes of the quarrel, and also establish contact.
Additionally, people should use the services of proxies represented by lawyers, accountants, or financial advisors. It is these individuals, on the basis of a power of attorney, who can verify the organization, speak at meetings, or require the submission of certain documents. Under these conditions, family members will not personally communicate on different working issues, which prevents aggression or resentment.
What to do if you can’t cope with the situation?
Even if people will use different methods to prevent scandals and strife, this is not always effective. Often in the family there are people who are really aggressive and scandalous, so they deliberately quarrel with their relatives.
Under such conditions, it is advisable to hold a meeting of shareholders in order to get rid of the part belonging to this relative. He is paid an amount equal to the value of his portion of the shares. Under such conditions, the remaining shareholders will be able to calmly continue their entrepreneurial activities without constantly encountering aggression or dissatisfaction of one shareholder.
Conclusion
A family business is considered difficult to implement and maintain. Scandals and quarrels constantly arise between relatives, which lead to a deterioration in the company's performance. Therefore, people should use some of the advice of psychologists to cope with this shortcoming of family-owned companies.