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