Ways to keep your family BBQ business smokin’
Approach it as a business, not a family gathering.
A common mistake in a family business is placing too much emphasis on family and not enough on business. The situations in a healthy business may not always be aligned with family harmony. Be alert to effective ways to deal with that. Order and alignment are vital.
Clarify who does what.
While various relatives may be qualified for similar tasks, work should be clearly defined to minimize conflicts. Critical decisions can be made together, but bickering over the small stuff will clog the workflow.
It’s business, put it writing.
It’s easy for family members to be drawn into a business without a plan for what they will get out of their investment. To avoid hard feelings or miscommunication, put something in writing that defines compensation, ownership shares, duties and other matters. Don’t leave anything out.
Business transparency.
One aspect of open communication involves being transparent. Family members in charge of different facets of the business must willingly share information, such as their successes, failures, and doubts. This is especially important when it comes to financial and legal news, like bookkeeping, taxes, and contracts
There must be balance in treating everyone.
While some consultants advise against hiring relatives at all, many small family-owned companies would not have survived without the hard work and energy of dedicated family members. Qualified family members can be a great asset to the business. Don’t play favorites, carefully handle pay, promotions, and work schedules. Don’t set standards higher for family members than for others.
Draw clear lines in management.
Family members who often have an expected future ownership in family businesses have a tendency to reprimand employees who don’t report to them. This leads to resentment by employees. Simply being a family member does not entitle you to deal with employees that do not report to you.
Draw lines in the sand.
It’s not always possible but try hard to avoid mixing business, personal and home. Family members can get locked into talking shop too much. Try to keep a balance.
Clear and consistent communication.
It’s easy to guess and make assumptions. Problems and differences of opinion are part pf business life. Production meetings help clarify what needs to be done and how. Regular meetings will also help in discussing progress and bottlenecks.
Don’t hire family members just because they are family.
Avoid becoming the employer of last resort for your kids, cousins or other relatives. Employment in family businesses should be based on clear skills and expertise they offer to improve the business.
Work with the many family benefits.
Family-owned businesses can enjoy unique benefits. One is access to dedicated help in the form of other family members. This can be a key to success, as family members can provide low-cost or no-cost labor, or emergency loans. Family businesses run by trusted relatives can also avoid special accounting systems, policy manuals and other issues.
Work with an advisor.
The decision-making process for growing a family business can sometimes be too closed. Fresh ideas can get lost in the tangled web of family relationships. Seeking guidance from outside advisors who are not affiliated with any family members can be a good way to give the business a reality check.
A succession plan is vital.
A family business without a formal succession plan is going to run into trouble. The plan should spell out the details of how and when the torch will be passed. It needs to be a financially sound plan for up and coming youth and for retiring family members.
Interest in progress.
If you’re hoping to build a family business that can withstand the test of time, then you must be willing to evolve. Many family-operated firms are rooted in tradition, and this can serve as a stabilizing factor in the organization. However, you can’t let long-established customs prevent your company from adopting new ways to develop the business.
Whether it’s using new technology tools or altering standards, families have to change with the times. This forward-thinking helps the organization thrive year after year, bring in the best talent on the market, and better connect with existing and future customers.
Require outside experience first.
If your children will be joining the business, make sure they get at least three to five years business experience elsewhere first. Preferably in an unrelated industry. This will give them valuable perspective on how the business world works outside of a family setting.