Family In Business : Tips For Success

There’s a saying that runs : “The first generation builds the company. The second preserves it. The third squanders it.” According to some research, there are fewer than 5 percent of family-owned businesses that survive under control.

The book “India Unbound,” an international bestseller authored by Gurcharan Das, explains this phenomenon : “The first generation makes the money, and naturally wants to flaunt it. The second doesn’t want more money ; it wants power. Born into money and power, the third generation dedicates itself to art, or more likely just squanders the fortune. The Kennedy’s, Rockefellers, and others illustrate this cycle.”

However, not all family in business is taking this same dismal track. Josie O. Santamaria, author of “Managing Work and Career,” says there are families who have made their partnership in love, marriage and business successful. It listed the following tips to couples who plan to start their own business or are running one :

* Be sure you are in business which both of you believe in, are enthused about, and can do together.

* Plan together. Set goals and objectives and agree on priorities and action plans together. This will unite you and make you move along the same direction.

* Openness is very important in both marital and business relationships. If you disagree with your spouse, voice it out and deal with it face to face but not in front of others.

* Delineate roles. Clearly delineate your responsibilities and agree on the roles and accountability of each one. Practice mutual empowerment.

* Acknowledge the area of competence of your spouse in his or her area of expertise. Let him or her shine. Don’t

compete for the limelight.

* Respect each other. Respect your spouse’s opinions, judgements and decisions.