Family Business: A special breed of entrepreneurs by Marilyn Edelson

Family Business: A special breed of entrepreneurs
Managing Communication and Conflict in Family Business
by Marilyn Edelson

An update of my article "Moving Ahead," orginally printed in "Boston Women's Business" last July, is featured this month on IBizResources.com and Family Business Strategies. Family business owners are a special breed of entrepreneurs that form 80 percent of all businesses. One of the most common problems in family businesses is poor communication and conflict—between spouses and generations, and amongst siblings. Many family business enterprises have failed as a result of miscommunication.

Here are some tips to keep communication in your business in good order.

Accept that conflict is normal and can even strengthen relationships if dealt with appropriately. Allow for feelings to be expressed openly.

Deal with issues not personalities; try to base any negotiations on objective criteria.

Deal with conflict when it arises or as close to the time as possible.

Focus on interests, not positions. Look for shared interests and a "win-win" solution whenever possible.

Take a communication inventory regularly.

Create a trusting environment through practicing generosity—financially, providing information, giving time, giving of yourselves, and being fully present to one another.

Create a family council, family meetings, or family retreat to allow the family to talk on a regular basis. (Ask us about the Best Year Yet® team program which is ideal for family retreats.) Some family businesses have a Communication Committee which sends out regular emails or newsletters.

Teach children good communication at a young age. Walk your talk with them.

Consider third-party assistance when stuck. There are various professionals that serve as family business consultants—lawyers, accountants, bankers, mediators, and family systems specialists with therapeutic backgrounds. A family business coach (who may bring in other specialists as needed) differentiates themselves from others by staying with the business over time to see that necessary changes are successfully implemented.