Everyone who knows me knows I have a soft spot for family businesses.

Family businesses are important entities in many societies all across the globe;in that they not only provide employment to people related to each other but also bring family members closer together as they relate with each other on a daily basis. In fact, creating a more balanced work/family life is often one of the primary motivators of entrepreneurs in traditional businessI work with.

That said, it is very important to note that for a family business to thrive and be passed on from one generation to another, there has to be order and a way of doing things that is compatible with the professional and personal lives of family members involved in the family business.

That is why shaking up a family business is often times necessary in order for that family business to survive and thrive.

So, what should you look out for when running or launching a family business?

Employing the right people with the right skills

The first thing that has been found to be making family businesses fail is nepotism. Even though these businesses are called family businesses, these does not necessarily mean that every family member should be involved in the running of that business. Blood or marriage ties should not be the only factor that is considered in running a family business but also skills.

Only those family members with the necessary skills needed to run a business should be involved in running a family business. Detrimental “family favours”that have been a major characteristic of entrepreneurs in traditional business in the past must be reconsidered. Today, we demand professionalism, along with an alignment of values and ethics from the businesses we choose to buy from. That means every single one of your team has to be on board.

OK, so you may lose a few part time family members with a reshuffle, but overall, if your productivity increases and your client base is happier, that means a better outcome for the whole family at the end of the day.

New strategies and skills

The second aspect that should be done to shake up a family business is implementation of new strategies, technologies and ideas. Since family businesses often employ many family members from different generations, sometimes there may be a conflict of ideas between the older generation and the new one. The older generation which is the generation of entrepreneurs in traditional business may refuse to adapt to new ways of doing business and instead hold on to their outdated ways which in the long run may affect the business negatively. It is therefore necessary for a family business to be updated on every aspect of its business starting from the technology aspect to its human resource aspect.

Conflict resolution

The third way you can revamp up a family business and make it operate more efficiently is by coming up with a peaceful conflict resolution process between family members.

One way of doing this is by for instance agreeing that no professional work related subjects are discussed outside the work area between family members.  This helps get rid of tension between family members and in the long run the peaceful work environment helps bring out the best in every family member.

Family businesses are special. They provide valuable learning opportunities for everyone involved – the new generation and the established business people in the family – along with a solid connector between a family. That’s why it’s so important for everyone involved to agree to keep the success of the business as a big picture goal. Conquer that, and you have an amazing environment for family business to flourish.