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admin July 7, 2020 0 Comments

90% of businesses are family-run as per research… some of the tips you should keep in mind while trying to do business with family members:

  • it is all about partnership and sacrifices. try to take care of each other
  • there should be a preference for love and affection before profit & transaction in the family business. please keep in mind.. if you are not prepared… ditch it
  • keep your roles extremely clear, most of the differences amongst family members is due to non clarity of contribution
  • know your terms clear and better document it before starting with regards to investments, compensation, drawings, sharing, etc.
  • jointly create a family board which can supervise the business
  • create a brief business plan to understand what you are trying to venture and what will be its outcomes
  • trust professionals to drive specific roles in business especially finance, technology, production, marketing, etc., one need not be a family member
  • understand the strengths of each family member who would be playing part in business execution and accordingly allocate the authorities
  • know what decision who can take and write them (this is called delegation of authority matrix)
  • also have an open talk about induction of next generation

key elements are: Clarity, Professionalism, Financial Prudence, Alignment