Family businesses have been around for many years and they continue to thrive. About a third of family businesses reportedly grew last year – a growth that’s higher than any other business type. With the right processes and bookkeeping firm, you can systematically track your finances and grow your family business.
There are plenty of benefits for keeping the business in the family because families typically stick together through hard times and often share common goals. However, it can get complicated and even cause legal disputes if not done carefully. Here are some ways on how you can grow your family business.
Even if you’re planning to hire a family member, you still have to take the hiring process seriously. Find out what they can contribute to the business and if they match the skills and experience you’re looking for. It’s better if their abilities complement yours. Don’t be afraid to give opportunities to people who are outside your family and be objective and honest with yourself. If you’re worried about possible conflicts, you are not obliged to hire them. Make rules on business goals, responsibilities and communication guidelines and stick to them.
Remember to be fair to all employees – family or non-family alike. Do not show favouritism or pay family staff more than other employees in equivalent positions. Keep your emotions out when making business decisions. You want to bring out the best of all your employees and it will cost you money if they leave or become demotivated.
It is also important to set clear expectations even with family staff. You have to be as strict with them as you are with other employees. Unproductive staff can affect the business’ efficiency and reputation, so act positively. Don’t take work home. Equally important the boardroom should be kept free of emotions.
To stay firm on finances, you have to hold family employees accountable for keeping expenses down and bringing in revenue. Use data, charts and graphs from your bookkeeping firm. Choose who can see the books and use an accounting software to keep confidential information private. Your accountant can help you manage finances and make impartial decisions for your family business.
You can also plan inheritance early on to avoid resentment between family members. Talk to your accountant for advice. About a third of businesses fail after being handed down to the next generation, so it is prudent to plan and communicate carefully with your successors.
As you look for different ways to grow and improve your business, seeking professional advice from a business accountant and consultant could prove to be an important and helpful decision.
You can click here to speak to a business expert and bookkeeping firm. We would love to help you formulate investment strategies and streamline your processes to take your business to the next level. Our goal is to help you grow your business, find ways to invest more and increase your productivity.