Over the years, many people have asked me how easy or difficult is it to run a family business. My answer remains the same – it’s very difficult to run a family business. You have to think long-term; your decisions can’t be based on short term profit or loss.
To run a family business successfully and in an organised manner, you also need to create a constitution-like document that outlines how to do everything correctly. It’s a document everyone can refer to, literally acting like a handbook. There can be no room for confusion between family members – everything has to be clear and transparent.
More important, you have to go from ‘me’ to ‘we’. That’s the only way you can understand the needs of the business as well as the family….