Concerning family business there are two opposite points of view. The first - relatives cannot organise successful and prospering business owing to relations, which have developed between them. And the second - relatives are capable to create a stably progressing structure. Where is the truth?

As it is surprising, both opinions have firm practical acknowledgement. What is the reason of existence of two opposite answers to the same question?

How to avoid conflicts in family business

Having dared at family business, it is necessary to consider possible difficulties in advance and try to exclude them as much as possible. It is desirable to develop accurate rules for you and relatives-colleagues and discuss them in common, having made of any decision unanimously. And to avoid undesirable misunderstanding, it is necessary that everyone would adhere to them:

1. First of all at the enterprise organisation authorised papers are made. Depending on a joint decision as for rights, duties and a role of each of family member in the given case, it is necessary to register founders and their share in an authorised capital stock in authorised documents. It will prevent a conflict in case of negative outcome of organised business at property section.

2. Having assigned any stipulated post to each family member, we recommend to make duty regulations for each established post in which a circle of questions and problems, duties and responsibility, corresponding to each post, should be necessarily fixed. Duty regulations help to systematise a manpower, rationalise labour process, and also limit possibility of «nosing into affairs» of those, whose curiosity frequently leads to serious family and industrial conflicts.

3. Besides you should have an accurately defined chain of command that anybody from relatives does not incur superfluous powers, doing inappropriate remarks to other employees, as such phenomena cause indignation in collective and decompose labour discipline.

4. It is necessary to outline and register, for example, a circle of questions for joint family discussion in legal decision of session of founders. On a family council all questions which concern financial side not only enterprise, but also family budget (business expansion, authorised capital stock increase, replenishment of circulating assets, crediting, investment, participation in tenders and so forth) should be discussed.

5. To register a schedule of work in a domestic situation and try to adhere to a certain operating mode. Very often because of absence in a family cirscle and constant presence at work, there is a disintegration of families and conflict situations in business.

6. Equally fair relation absolutely to all employees irrespective of related communications is necessary.

7. If your business has got more bulky scales, and you cannot supervise it through former forces anymore, it is expediently to depart from affairs and work of an executor, having put a relative who has proved in the professional plan on your place, and give more time and attention to a family.

8. Attracting children into business is a very important point. In order to avoid conflicts of persons and business principles, it is necessary to be guided first of all by a child’s interests. In no event an idea of family business should be imposed by you. A child should come himself to being engaged in not just business, but business based by his parents. And it is necessary to interest in nuances of business, since high school, and not to refuse satisfaction of curiosity concerning theory, practice and technology of development, both your business, and business as a whole. Probably, your child will transform small business begun by you into international and recognised business.

Adhere to these simple rules – and success in family business is guaranteed to you!