Navigating the Family-Owned Business

By Zelda Greenberg

With 80 percent of businesses being family-owned, many couples desire to work together, even when it means overcoming the various obstacles and challenges business owners face. So, if you’re already in business together, what can you do to improve your company, both financially and emotionally? How can married couples thrive in business together? These issues are especially important to family-run telephone answering services, which never close and seldom given owners a break.

Goal Setting: Every business should have a written business plan. In the beginning, it might be only a couple of pages. A business plan is always a work in progress. You’ll continue to tweak the plan as the company grows, but there are basic items it must convey to avoid future conflict.

First, state your overall goals, both short- and long-term. Then ask each other, “What will we do to advertise and market our answering service?” The plan should cover all the elements necessary for success. It should also describe who is in charge of each area, including sales, marketing, operations, technical, and finances. Then it’s time to determine a budget. Discuss how much money you’ll need to accomplish all the plan’s goals.

Responsibilities: Your business plan should clearly state the different responsibilities needed to run your business. Together, you should determine who can best accomplish each responsibility. Is your spouse better at finance and numbers? Let the stronger one be in charge of fiscal responsibilities. The spouse who is in charge of the financials should also be responsible for government reporting and all accounting functions. Who will handle sales and customer service? Once a job function is designated, respect each other to make the right decisions. Review this on a regular basis.

Communicate Effectively: Everyone has a different style of hearing and learning. Listen to how you speak to one another. Some people hear what you say but need a little time to process it. Learn how each other hears and be patient. Whenever you have a disagreement, never voice those concerns in front of employees or other family members. Let each person state his or her opinion and, if necessary, go back to the written business plan as a reference guide.

Leave Egos at the Door: There’s no room for power plays in a family-run business. You must create and maintain a harmonious environment for yourselves and your staff. Your harmony (or lack thereof) will make a huge difference in sales, customer service, and effectiveness. Customers, employees, vendors, and suppliers must see you working together. A bickering couple creates tension and makes the entire environment toxic.

Hold Regular Meetings: It’s a great idea is to schedule weekly or even daily meetings. They should be held at the office, not home. This is the time to discuss expenses, profit-and-loss statements, goals, and problems you have. All communication should be constructive and in line with the business goals.

Trust Your Board of Advisors: An outside board of advisors is wonderful for finding solutions. You can meet periodically as a group (quarterly, for example) or one-on-one as necessary. A good mix would include a CPA, an attorney, a banker, a marketing expert, and someone retired from the TAS industry. Also, check with your local chamber of commerce to see what programs it may have to help businesses grow. It doesn’t matter if your board is formal or informal; what’s essential is that you have a group that will provide honest feedback.

Remember: At the end of the day, you’re going home together. Try to keep that in perspective and leave the shoptalk where it belongs. To survive in today’s competitive marketplace, you must be able to successfully conquer a work-life balance. When you maintain balance, you can have a successful business and happy marriage.

Zelda Greenberg is a consultant, speaker, and entrepreneur; for information call 904-262-7357. This article is courtesy of www.articleweekly.com.  

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