Family businesses run the whole range of very dysfunctional to top notch business.  What makes a family business go one way or another?  There are some basic fundamentals that are essential in running a profitable and harmonious family business.

Compensation –

• Make sure it is in-line with what they actually do
• Make sure it is in-line with how well they do their job
• Do all family members have ownership in the company?  If not, what is the criteria used to designate “owners”?
• A family member should not make the same amount as the CEO just for being part of the family tree

Disputes –

• Have procedures in place for how to deal with family disputes – whether it is using a family business coach, legal team, HR department, etc
• Have a written policy on hiring family – this needs to be VERY specific with process of being considered, hired, and what the qualifications are to be an employee.

Family vs. Business –

• What is the role of in-laws, if any?
• Is family business an off-limits topic and holidays and other family functions?
• Remembering that family is far more important than any business