Creating Healthy Boundaries Between Family And Business
Whether directly or indirectly, a family has an impact on the business’ ability to be successful, profitable, and very importantly, scalable. Our company is a family business that works exclusively with other business owners, so we have an intimate knowledge and understanding of what this really means.
We get a lot of questions about how to create boundaries between family and business. What we usually get asked first is if there is a way to create a separation between family and business. I am here to share with you the good news. Yes, you can create healthy boundaries between family and business. However, like anything else, it does take some work. So let’s dig in.
The first thing to understand is governance and how it plays into your business. It is a term that is often not immediately understood by multi-unit franchisees we talk to. Governance is simply a set of policies and procedures that are intended to create guidelines for how family members interact with other family members, and how the business interacts with the family.
I understand that not all multi-unit franchise owners have family members in the business, so you may be asking yourself, how does this apply to me? If you are an entrepreneurial-owned business that might one day have the potential of involving family or friends, then governance policies are essential for you, too.
Simply put, governance policies for business owners are policies and procedures to set the guidelines for:
- Who can be considered for employment in the business?
- What are the performance expectations as an employee in the business?
- How to develop compensation plans, perks, and benefits for employees in the business?
- Who can be involved in the decision making/and the process for decision making?
So how does this apply to you if you do not have family in the business? Great question. The answer is that as an entrepreneur, you should develop out these policies and procedures as a foundation so that if/when a family member, friend, or anyone with whom you are relationally close someday would like to be involved in the business, you are all in agreement to the terms.
The business owner sets the tone of the business. You act as a role model for how to treat one another which can attract or repel talent to be a part of a team. And, in a time when talent is at a premium, there has never been a better time to consider how you can continue to build on the foundation of your business success.
Kendall Rawls knows and understands the challenges that impact the success of an entrepreneurial owned business. Her unique perspective comes not only from her educational background but, more importantly, from her experience as a second-generation family member employee of The Rawls Group - Business Succession Planners. For more information, visit www.rawlsgroup.com or email email@example.com.
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