Avoid Family Conflicts
Family owned businesses, like all businesses, will experience their fair share of conflicts. Because the people working in the business are family members, issues involved can run even deeper and tempers can run much higher.
As the owner of the business, you will need to investigate ways to manage family issues and minimise conflicts that arise. Perhaps the most valuable thing to consider is to plan ahead so that strategies are set in place which can be brought out when a crisis arises.
Some recommendations for averting crises in the family business include:
- Develop an estate plan.
- Adopt a succession plan to provide for someone to run the business.
- Enter into a buy/sell agreement with the other shareholders to prohibit transfer of family shares outside of the family.
- Consider having an outside adviser on the board, bringing an independent view where members of the family disagree.
It's a good idea for a family business to have in place a conflict resolution procedure and this can be written in the documentation of the business. This may include referring the ...
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