Should you franchise with your family?

One of the benefits of purchasing a franchise business is that you are building an asset for your family. Naturally, many people turn to family to help them nurture in the business, after all, who do you trust most with potentially one of the biggest financial decisions of your life? However, for many, working with family can end in tears and place stress on relationships inside and outside of the business.

 

Here’s six key tips to keeping the family and the business on track:

 

Clear roles, responsibilities and management structure

Ensure that everyone in the business – family or not – has a clear job description and understanding of their role. This will help ensure everyone is focused on what they need to do to make the business operate smoothly.

 

Ensure consistency and fairness

It’s important that employees are treated fairly to maximise employee engagement. Paying all employees, including family members, at award rate, for example, will ensure that there is no room for hostility or frustration.

 

Seek outside advice

 If family members are divided on a business decision, seek independent, third-party advice from a professional. It may be a business coach, marketing consultant, accountant or solicitor. The important thing is that they are independent. They can remove themselves from the emotion and help guide your business decisions with accuracy and impartiality.

 

Keep family dynamics and situations out of work

 Avoid bringing a personal issue to work. It can be hard to work with someone who you may have had a disagreement over the mortgage or kids’ report cards, but by keeping personal issues separate from business issues, you can avoid personal feelings impacting business matters.

 

 Clear, regular efficient communication and meetings

 If there is business to discuss, don’t bring it up on Sunday morning over brunch. Like any employee or business partnership, schedule meetings to discuss critical issues like performance or operations. Keep notes and minutes to ensure everyone is on track and on the same page.

 

Succession planning

Ensure there is a clear line of succession for the future of the business. This will help all family members plan for the future in the business or beyond it.