Building Your Family Business

Do you need resources for your family business? Do you seek increased commitment from current and future owners? You can achieve both by inviting family members to participate in important business-related roles. Beyond president, CEO or manager, here are some functions you might consider:

1 Family CEOs—Chief Emotional Officers
These individuals help family members maintain solid relationships. They have good people skills, are good listeners and act as mediators for family conflicts.

2 Promoters of Family Values
Promoters of values really understand the family dynamic, the business, the values and the aspirations of the founders and find a variety of ways to support the mission statement.

3 Industry Analysts
Assign one person to monitor and share industry information from the latest news, trade magazines and professional meetings.

4 Professional Experts
Educated and professional children and their spouses may not presently work in the business, yet they may be able to provide helpful insights and expertise, based upon their backgrounds. Let them know what you are doing and ask for their opinions and perspectives.

5 Temporary Employees
At times, small business owners need to expand their workforce. For example, florists need extra help during the holidays and farmers need more workers during harvest. Business owners encourage family member participation by providing training and compensation for temporary work, and by providing social gatherings that maintain positive relationships.

6 Community Ambassadors
Family can participate in professional organizations, get involved in politics, and build relationships with other local businesses. The idea is for the ambassador to network and find connections to help your business.

7 Philanthropy Specialists
Philanthropy is a great way to build community relationships, and a family member can be assigned to manage your firm’s efforts. He/she can develop and implement a plan that also suits your family values and community needs.

8 Board of Advisors
 To fulfill this role effectively, family members will need access to business and financial education, knowledge of the business and training and experience.

9 Marketers/Promoters
Most family members can fulfill this role. You simply need to share the business’ successes and encourage family members to tell others about them.

10 Family Council Director/Members
With second and third generations, the number of family owners increases. A council can be established to represent both family and business interests, with representatives communicating to both family and the board of directors. (In smaller families, all family members may be owners and can participate in formal meetings.)

11 Next Generation Trainer/Leader
Training the next generation to lead in the family business can begin at a young age. Family, staff and board members can work together with a trainer/leader to design learning opportunities that are fun, teach the history of the family and business and explain the business model.

Most family business owners need more help, so don’t overlook employing family members in key roles. With planning and organization, you may find the resources you need to build a stronger business while building stronger relationships within your family. 

Getting help from family members will require some preparation and effort. Here are some tips to create a positive participation experience:
 
» Help family members succeed in fulfilling their roles. Make the roles and the titles relevant to your business. Match roles with individual talents and competencies. Make education available through trade, community and educational institutions. Above all, treat family members professionally.

» Help family members understand your business—its mission, purpose, performance, product or service, and customers.

» Have regular meetings. Assign family members to lead them, take notes and head projects. Have family members report on their tasks.

» Provide guidelines. Tell family members how they can be useful. Communicate expectations and have a plan to review how things are going.

» Frequently recognize and thank family members for their efforts. Tell them how their efforts help the business and the family. Avoid criticizing them, as positive feedback may be their only and most valued reward.

» Treat family members with respect, kindness and patience. Realize that it may take some time for family members to learn to work with you and the business in fulfilling their roles. Begin where they are and develop their competence over time. You might begin by just having family members attend and observe board, community or trade association meetings.