How Not to be the Next Family Business Scandal

Admit it. Don’t you enjoy reading about family business scandals?

It makes your family business seem more normal. You’re not alone. The most popular category of articles on Fambiz are about conflicts and family scandals.

Virtually every family business scandal originates from some form of conflict; sibling rivalry, compensation, favoritism.

In our family business conflict didn’t exist between family members. We were fortunate. Where conflict did come into play was when the company began to grow rapidly and we began to professionalize the business. This brought up contentious issues like how fast to grow, hiring non-family talent, changes in roles and corporate culture. The difference was these issues were business-related and weren’t personal.

Conflict is usually dormant in the early years of a family business, but often gets uncovered when a business is getting ready to transfer to the next generation. More…

ADVISORY BOARDS: Not Just for Big Companies Anymore.

DO YOU EVER catch yourself saying, “why change, we’ve always done it this way” or “I mentioned that idea before, but no one listened” and “I wish we could do this, but it would hurt his feelings?” As small businesses, we have a unique ability to make clear- cut decisions and not get caught up in the bureaucracy. Unfortunately, this same advantage also goes against us, when we are faced with growing the business and making critical decisions. Everything works well when we are in agreement with each other about the strategic direction of the business. But when we are not on the same page, we get bogged down making decisions and deciding on the direction of the business, because our personal feelings often get in the way and impede us. More…