Many multi-unit franchise business owners do not view themselves as family business owners. As a result, many fall prey to avoidable conflict and unreasonable expectations among key leaders, long-term loyal employees, and their families.
Building an attractive culture means creating programs and strategies to “get to know” each other beyond driving revenue and meeting business goals. For example, company events such as Christmas parties and the unique cultural sauce your organization interweaves into the day-to-day activities often create a “familial” work environment. Naturally, familial bonds grow with history and getting to know one another beyond dollars and cents.
Many gurus and experts -including us – speak about the importance of culture, because without a “family business” perspective, culture can act as a double-edge sword. So often, we find that a strength, without balance, can quickly become a detrimental weakness. When we work with multi-unit franchisees, it is common for the culture to be either “over familied” or “over businessed.”
Developing family or corporate governance strategies ensures your business has the right balance. Governance strategies set clear expectations among employees, key leaders, and family as it relates to, but is not limited to, employment criteria, ancillary benefits, performance expectations, and more.
“Family friends” and extended relatives recognize an excellent opportunity when they see it. No matter how close you are to your loved ones, if these situations are not carefully considered from the perspective of a family company owner, they could lead to uncomfortable distractions. Family and friends will share the financial and emotional strain, making what was once a gratifying and possibly enjoyable undertaking into a genuine burden.
There may come a time when you are looking for investors or partners or inviting someone to become a shareholder in your organization. When you join two or more people in partnership arrangements, as partners, you also take on, in some way, their future ambitions and desires.
Kendall Rawls knows and understands the challenges that impact the success of a family-owned business. Her unique perspective comes not only from their educational background; but, more importantly, from her experience as a second-generation family member employee of The Rawls Group – Business Succession Planners. For more information, visit www.rawlsgroup.com or email info@rawlsgroup.com.