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Top 5 Strategies for Family Businesses

Do you own a small family business? Do you feel like you just need a few strategies that’ll help you on your way to success? If you’re missing the spark, read this blog till the end. We will tell you the top 5 strategies you need to implement in your family business today to make it successful.

1. Assign Responsibilities Everyone should be clear on what they are responsible for. Don’t just assume that someone will take care of a task. Come up with specified roles for each family member. The best way of assigning responsibilities is to make a list of each person's strengths and capabilities and then decide where they'll perform best. If someone is good with numbers, let them handle the finances.

2. Don’t Hire Unqualified Family Members We have seen far too many times that there is an internal pressure of hiring from within the family only. Hiring outsiders in a small family business is a big no for some people. However, the worst thing you can do for your business is to let unqualified family members assume the critical roles. You need to be confident enough to tell them that they're not qualified enough for the job.

3. Communicate Frequently Make sure you have frequent business meetings to discuss areas of concern and to gauge how everyone is performing. Provide regular feedback and constructive criticism to each member of the family. Communication must be frequent, but there needs to be some sort of boundary. You can't ruin the family dinner with business talk.

4. Record Your Finances The importance of recording sales and expenses cannot be stressed enough. Reconcile your financial data at the end of each month and see where you stand. Have you crossed the sales target you set for yourself? Set one if you haven’t done it yet. If you're a small business, you can assign the responsibility of handling finances to a family member. However, if you are a medium-sized one, it’s better if you hire an external accountant.

5. Plan for the Future You don’t want fights over the ownership of the business when the original owner(s) pass away or retire. Try to make a formal succession plan during your lifetime. It will ensure that the business runs smoothly into the next generation. Around 70% of family-owned businesses do not survive till the second generation. Final Word If you want to know more about how you can run a family business successfully, visit my website I, Dave Roby, am an International Business Coach and can help you on your way to success. Connect with me today!

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