Jeff Faulkner

How To Balance Family and Business
July 16, 2007

Maintaining balance in a family business is an extremely difficult task. The reason is simple – family business is an oxymoron. A family, assuming it’s relatively healthy, offers an environment characterized by a high degree of unconditional acceptance based exclusively upon who you are.

In striking contradiction, a business, assuming it’s relatively healthy, represents an environment of conditional acceptance based upon what have you done for me lately. Business requires conditions for everything.

It stands to reason, that the coupling of these two entities in the form of a family business would present an almost insurmountable mountain of complexities and challenges. As it turns out, this hypothesis is sound reasoning and is supported by research. Less than 1/3 of all family businesses survive the second generation.  Stop and think about that. Sixty seven out of 100 companies do not survive the second generation. That’s astounding! And it’s a shame!

 So, how do you maintain balance?

1. Admit that most of the family issues that exist in your business are because you don’t want the family conflict that goes along with being the bad guy.
2. Decide to get it right. Balance isn’t achieved by default. You gotta work at it. 
3. Understand the two opposing environments and the impact it has on the business as well as the family.
4. Recognize that your current direction will determine your ultimate destination. Are the decisions you’re making with family members leading you to where you want to be?
5. Make the tough calls required to change. Communicate to family members that they are not entitled to special treatment in the business.
6. Stop believing that because your business is successful you can allow family issues to slide. Image management will eventually bring more trouble. 
7. Face your fears. Deal with the issues presented by having family in the business. Recognize that your family is probably not as fragile as you think and can handle truth and straight-talk.   

Clearly, there are a multitude of reasons to not address the familial relationships as they are impacted by the business and vice versa. True family leaders don’t cower in the face of family challenges. Instead they boldly engage the family in dialogue and interactions that can at times be incredibly emotionally trying and nearly impossible to navigate. Go for it!

Posted by Jeff Faulkner on July 16, 2007 | Comments (0)