In this industry, one of the major stumbling blocks to success is a lack of boundaries in family business. After all, it’s common for family members to have multiple roles with a variety of responsibilities. If this isn’t accompanied with clear communication and structure, it can blur the line between personal and professional boundaries.
So how do you resolve that? In this blog, we’ll walk you through some expert insights to ensure that your family business has clear boundaries. That way, you can avoid conflicts, for an effective work-life balance that’s good for your family, and your company.
The Challenges of Blurred Boundaries
Without clear boundaries in a family business, it can be difficult to maintain professionalism. This can lead to a conflict-fueled home and work environment. And it can also negatively affect your relationships with suppliers and customers, directly impacting your business’ profitability, reputation, and future success.
Working with family members means you don’t really have a separation between home and work life. As such, issues in either sphere can spill over into the other. Unfortunately, higher levels of conflict can compromise both your business and family harmony. In fact, these issues often have a trickle down effect.
For example, the head of the business and family may have high expectations for the business, and therefore for the family members tied to it. Sometimes, this can manifest as micromanaging less-motivated employees, or even favoring those who perform well. Both situations can lead to frustration among the rest of your family. And when this gets carried over from the boardroom to the dinner table, it’s as bad for your mental and emotional wellbeing as it is for your business.
The best way to ensure clear boundaries in a family business, and promote a healthy balance between family life and time at the office, is to outline acceptable behavior from the start.
Establishing Clear Boundaries
As with any large business decisions, the easiest way to complete a large task is to break it down into manageable steps. Setting boundaries in a family business is no different. With a structured approach, this can be a straight-forward and pain-free process.
Use systems already in place
You don’t need to reinvent the wheel here. Start by using a key tool in place in every business – meetings.
A boundary-setting meeting should be the first step in this journey. Get everyone involved in your business together, with a set timeframe and agenda for what needs to be discussed.
If necessary, you can investigate systems that work in other companies as a guide for the changes that need to be made in your own business. Consider factors like:
- How to define roles and responsibilities in and out of the office
- Hiring policies
- Working hours versus family time
- Work discussions at family gatherings or vice versa
- Disciplinary procedures
- Acceptable reasons to bend the rules, like emergencies
From here, you can create a set of rules for each aspect that is important to your family. It’s vital to ensure you have buy-in from everyone involved. They all need to be aware of the decision made, and the possible consequences of not sticking to them. As with any company meeting, this should include an attendance list and minutes, which can be referred back to when needed.
Emphasizing competence can reduce conflict
One of the key components of maintaining professionalism in your family business is to ensure that your staff are competent. This means that the right person should be hired for the right position, based on their skills and knowledge, and not their position in the family.
However, whether you can hire from outside the family will depend on your unique situation. If that is possible, make sure you have consensus about the decision, and that they’re the right fit. If it is not possible, an alternative is to ensure the family member you want to employ has access to training and development to ensure that they have the right skills for the job. That way, they can flourish, and so can your business.
Similarly, you need to ensure that everyone who works in your company has a very clear understanding of what is expected from them. Roles and responsibilities should be outlined on an organizational chart. That way, everyone can see what falls within their area of influence, and can do their part to work towards the company’s overall goals.
This can go a long way in helping family members avoid overstepping their organizational lines, which can significantly reduce conflict and keep boundaries in place.
Be flexible
The needs of your business and your family may change over time. And that means that so too will your policies around boundaries in a family business. Also, if you’re introducing boundaries for the first time, you may need to review the systems you’ve put in place and tweak them to ensure they function for your family.
Don’t be disheartened if your new procedures don’t work or require changes – this is all part of the journey. With time and patience, you and your family can work together to ensure that the boundaries you do set in place are honored, and work for the benefit of the family and the bottom line.
If necessary, you can also reach out for help.
A professional business advisor can help you set up these sorts of processes to ensure that everyone in your family business is on the same page.
They also provide objective but expert opinions to ensure that all decisions are best for your business and your family.
Promoting A Work-Life Balance
If your family ends up discussing business at the dinner table, or having impromptu meetings at a family reunion or wedding, it may be time to consider revisiting your work/life balance. Having time off from thinking about work is essential for everyone, but in the realm of family businesses, it’s trickier than ever. After all, your colleagues are also your family, so there’s no physical change between who you see at work, and those around you at home.
But that doesn’t mean it’s impossible to separate the two – it just requires some practice and a little patience.
Clear boundaries in a family business encourage the many benefits of a positive work-life balance. These include:
- Enhanced productivity
- Less stress and risk of burnout
- Stronger family relationships
- Increased trust both in and out of the office
- Improved decision-making and strategizing
- Less conflict and greater harmony
So how exactly do you reap these rewards? It’s easier than you think – you just need to implement a few key strategies.
Learn to delegate
Many business leaders are tempted to do everything on their own, even if their family is involved. Not only does this pose a risk to your mental and physical health, but it can increase the chances of conflict at the office. A simple solution is to delegate as many tasks as possible. Not only does this help make the family you pass these activities on to be more involved in the business, but it spreads responsibility around so that everyone can breathe a little easier.
However, remember that in order to delegate accurately and efficiently, each family member or employee must have clearly outlined roles and responsibilities. Delegating a sales task to a finance team member, for example, is a pretty effective way of ensuring it either won’t get done, or it won’t meet company standards.
Clear communication is key
One of the most critical aspects of running a successful business is to communicate with everyone, about everything, at all times. Transparency is a fundamental aspect of boundaries in a family business, allowing you to lower the risks of misunderstandings, assumptions, and even conflict.
Have regular check-ins and meetings, to allow everyone in the business to be able to report on successes, failures, and challenges. Not only is this a way to regularly remind everyone of the business’ vision and ensure you’re all working towards it, but it’s also a great opportunity to allow for group decision-making and problem-solving.
Keep an eye on the clock
Many successful family businesses recommend having set times that are for work, and others for quality family time. For example, you may decide to limit work time to traditional business hours. These boundaries should be upheld and respected, no matter how tempting it is to quickly have a work call during family movie night.
With time, you and your family will find it increasingly easy to have set times in which work can be discussed and performed, versus times when family comes first.
When in doubt, reach out
A family business is uniquely positioned to ensure that you’re not doing it all alone, because you’re surrounded by those that love and support you. But you can also expand your support base through professional guidance. This is particularly helpful if your family struggles with boundaries.
Calling in a mentor can revolutionize your business operations and practices to ensure that your company is a success. But at the same time, they can help you strengthen your family ties, and improve those relationships.
Advisory services such as those offered by Fusion CPA go beyond the financial side of your company – they’re a way to build boundaries in a family business, for a sustainable future for both your family and your business, by addressing your unique challenges.
Whether you’re preparing for a leadership transition, looking to streamline your financial processes, or aiming to align family and business goals, our team is here to support you every step of the way.
To take your family business to the next level, schedule a Discovery Call with our team today!
The information presented in this blog article is provided for informational purposes only. The information does not constitute legal, accounting, tax advice, or other professional services. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the information contained herein. Use the information at your own risk. We disclaim all liability for any actions taken or not taken based on the contents of this blog. The use or interpretation of this information is solely at your discretion. For full guidance, consult with qualified professionals in the relevant fields.