New Trends in Small Business – Family Business Council

Family business days operated casually have ended. In order for small businesses to compete with large, commercial companies, a successful family business has changed from the operation that is run casually to the small kingdom run by the Board of Directors. Some of these smart businesses now also jump to new trends: creating a family business board.

But keep in mind as a board of directors and family business councils are two completely different things.


The family business board is arranged more like an open forum and is used to directly solve problems in families that are very important in terms of business success. Because often the lines between family and business have blurred in family operations, the family business council provides open settings where business members and families can resolve the problem that if left unresolved can cause confusion, stress and even business fall.

Structure of your business

If you compile a family business board for your small business, it’s important to create a policy foundation that will complete potential problems that might arise later. Some common policies that need to be created include:

Authority and responsibility – Create a clear definition of who holds what authority and who is responsible for what position in the company and in the family council. Every individual must have a clear list of expectations, responsibilities and definitions about what their authority is needed. In the end, everyone involved in the business must be clear about who they report and what they do for the company.

Working and Holiday hours – A number of hours of work / day and holiday conditions per family employee must be made as part of a business policy manual.

Office life – Company members must have a clear definition of where their office or work space, what work goods they will give themselves and what items are included in the company – family or not.

Compensation and benefits – detailed salary structures must be made that outlines each company member and how much he receives in terms of compensation and health care benefits or pensions.
The family business council must create all these policies using “Open Forum” techniques so that no family members or non-family members of a company that feels a favorite begins to apply in terms of company policy.

Start in your small business

You can grow your business using the Board of Directors and the Family Business Council. Businesses that do not operate with the Board of Directors still have to use the family business council to create a fair operating structure for their family operations. The initial meeting must be held by a business consultant that is not related to business owners or directly related to business in any way. Make sure the business advisor uses the first meeting for:

Create an environment based on mutual agreement and trust among all family members involved in this business.

Give all members of the family council the opportunity to share opinions about business operations and bring up the underlying business problems.

Give the main family members in the business opportunity to define the purpose of the company as a whole, listen to the problem and reconcile any family disputes that will directly affect the company.

Provide assistance to family members in terms of defining the authoritative role, relationships and responsibilities of all company employees.

Family Business Council is a fear-free environment – which means anyone present has the right to speak their opinions without fear of counterattack, disagreement or punishment in the future. It is important for every family member to speak in his mind in connection with business operations until the entire group comes to consensus.

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