Growing up as five boys in a tight-knit, sports-oriented family was great. We were always very close and our competitiveness helped to push each of us to try new things and get better at the sports we were passionate about. Now that we’ve all grown up and developed our own careers, we still try to help each other with whatever project one of us is working on at the time.
Between the Gronk Fitness brand, which focuses on fitness equipment and attire, and the Ice Shaker protein bottles, we’ve learned a lot about running a family business. Learn more about our experience as entrepreneurs and get tips on how we’ve made our business work.
Clear Lines of Communication
Communication is one of the most important aspects of running a business whether you’re working with family, an investor or even solo. Luckily, as a family business, communication has been one of the easier facets of starting a new company because we are so close and know each other so well. While we are comfortable talking to each other about new ideas or problems that we need to solve, you do need to make it clear to your other family members that when it comes to discussing business, there are certain times they should always be available.
This is not to say that your family needs to be ready to talk about business at any given time of the day, but you should determine a specific timeframe during which everyone needs to be available—for example, Monday through Thursday from 9 a.m. to 4 p.m. Or, set up a regular time when everyone involved in the business gets together to discuss issues and ideas like a weekly or bi-weekly meeting.
I think what makes it so easy to communicate as a family business is due in part to the fact that we all know each other’s personalities, so we can often guess how someone will react or help to advise in a certain situation. However, if you have a family member who is part of the business, but you know they may be sensitive to criticism, it’s essential that you develop a method for addressing issues without offending or upsetting family.
Develop Specific Roles and Duties
When first starting a family business, many people make the mistake of keeping the arrangement too casual. Because you know your family so well, you may be less inclined to set strict boundaries about job descriptions and specific duties. However, you need to remember that a business is a business no matter whom you’re running it with, so take some time in the very beginning to outline talent that the company needs, get specific about what is expected of each role and determine who best fits each job description.
Create a Clear Business Plan
When I first approached my family with the idea for our Ice Shaker protein bottles, I made sure to have a detailed business plan prepared so that I could answer any questions they might have and explain exactly how I planned to turn a profit with the company. Once they heard this initial business plan and agreed to help, we revised this business plan according to other ideas and suggestions I received from them. Working together on this business plan will keep everyone focused and make the goal of the company clear.
Make Everything Official
Similar to the idea of creating specific roles, when making any major business decision be sure to put it in writing. Using contracts might feel unusual at first because you’re dealing with family members. While trusting your family is one of the benefits of running a business together, any major decisions should have clear records so there aren’t issues further down the line. Basically, you need to still treat your business like any other company and use contracts when necessary.
Try to Keep Personal Issues Outside of Business Decisions
This may be one of the most difficult aspects of running a company with your family members. When personal issues begin to spill into the business, things can get messy in both an individual aspect and a company-wide respect. A good way to avoid bringing outside issues into the business is by agreeing with your family that when you are at work or in a meeting, everyone needs to treat the situation as they would in any other professional setting. Personal situations can only be discussed at home or outside the general work environment.
Seek Advice from Others
One of the favorite parts of working with my family is that I trust them and value their opinion, so we often collaborate really well together when it comes to creating new ideas or solving problems. However, because family businesses are often run by a very tight-knit group, it is beneficial to get some outside opinions from time to time. Having a trusted friend, significant other or more distant family member who is not involved with the business as an advisor is wise to get a mix of opinions and may help you come up with ideas and solutions you didn’t think of on your own.
Remember That Everyone Is an Employee Even if They’re Family
Unfortunately, the most difficult aspect of running a family business, in my opinion, involves how to handle members who are not living up to their responsibilities. With any other business, if an employee isn’t doing their job, they usually are spoken to, get a warning and, if the behavior continues, they are let go. But, when you’re running a company with your family members, particularly siblings and/or parents, it becomes much more difficult to fire someone you care about and see regularly.
If you find that one of your family members seems to be slacking off, try to approach them in a casual setting and ask why they’ve been acting this way. If the problem continues to escalate, whichever family member has been delegated as the leader should have a more serious one-on-one conversation explaining that you are still running a business and everyone needs to pull their weight if they’re going to be involved.
