Managing your family SME

Not every small business owner will be born as a natural leader and for some the concept of management will hit them as a daunting task. 

As an owner you will most likely settle into a management style that matches your personality but your leadership style may change if you run a family business. When you run a family business not only do you have to manage the roles of people close to you, you also need to manage the relationships. 

A strong leader can be the stepping stone toward business success so we've found three management tips to help you run your family SME and maintain key relationships at the same time.

Multiple decision makers

It's common for a family business to have one leader that oversees the business operation and makes all the main business decisions. It's even more common for that leader to be one of the parents involved in the business. However, if you have children involved in your business it's important to give them the opportunity to make key decisions as well.

Remember, you won't run the business forever and there will come a time when they will be required to step up to the plate.

Open communication

Family businesses are unique in the SME market because even businesses that are flourishing financially can be corrupted by spoiled relationships between invested members.

Conflict is a common problem for a family run SME so it's vital you maintain an open and honest stream of communication to help ensure everyone shares the same vision.

Equal employment

Not every business will be made up solely of family members and it is easy for those non-family members in your SME to feel out of place.

As a leader it's important you make everyone within the business feel welcome and comfortable. Many leaders may actually favour their family members without knowledge they are doing so, but in order to maintain the motivation of your entire workforce you should endeavor to treat everyone equally.

Struggling to keep hold of your best employees? Check out this article for more information on how to retain them!

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