What do successful family businesses do differently?

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Working in family business management is challenging. Balancing relationships, professionalizing processes and organizing the company are some of the challenges. However, we have many successful family businesses in Brazil and around the world to show that this model can be very successful. In Brazil, this is one of the most common forms of entrepreneurship.

Want to know what these successful family businesses do differently and how to implement these processes in your company? Read the article until the end!

What do successful family businesses do differently?
They professionalize the company
The difference between small businesses and successful family businesses is professionalism. Leaving amateurism aside and investing in training the entire team and in technological innovation contributes to the evolution and progress of the enterprise.

They make good successions
Succession is a conflicting process in any family ivory coast phone number lead business, especially when there are several family members who want to take responsibility and take charge of the business.

Handing over the company to an unqualified and unprepared person can lead to frustrating results and, in extreme cases, even cause the company to go bankrupt. Therefore, the entrepreneur must think about business succession and how the company will exist without him/her from a very early stage .

The secret to resolving the succession in the best possible way is to establish rules for the line of succession, familiarizing the heirs with all the functions, responsibilities and obligations of the position until one can assume the office.

Invest in professional qualification
Being a member of a family is not enough to be able to manage a family business. Successors need to study to ensure that management is carried out seriously and using the appropriate techniques.

This can be done through undergraduate, postgraduate and other training and refresher courses, according to the demands of the company and the market.

Add professionals when necessary
It is also important to bring in qualified professionals from outside, when necessary, completing the team with the skills and knowledge needed to achieve the business objectives.

We don’t always have someone in our family to fill every position. Before hiring a family member or friend without the necessary qualifications, consider hiring externally to ensure that the position is filled in the best possible way.

They know how to separate family ties from professional ties
This is one of the biggest challenges for small businesses, but successful family businesses already handle it with ease. To ensure that family relationships do not harm the business, it is important that everyone involved understands the importance of separating work from personal life.

This means that problems experienced at home cannot be brought into the day-to-day running of the business, just as work problems should not interfere with family leisure time. It may be difficult, but once this boundary is drawn, it will benefit both the business and improve the coexistence between family members.

Delimit functions
When professional backgrounds are diverse, each person has a role and function in the company. Therefore, it is important that employees who are part of the family have their roles clearly defined, as do other team members.

It is also essential to define who has the final say in the event of a disagreement. One member may have the final say in relation to finances, another in relation to marketing or sales, for example.

Respect the company's hierarchy and culture
In a family business, family members may hold different positions that do not correspond to the family hierarchy. An uncle, for example, may be a manager while his niece is a director of the organization.

Regardless of family ties, the company's hierarchy and culture must be respected, and all employees must be treated with respect. Favoritism must also be eliminated to avoid internal competition that could harm the company.
Did you enjoy learning about how successful family businesses do things differently and how to apply this to your business? Check out the section on Society and Success on our blog!