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The Competitive Edge Newsletter

Edition 35

How to Run a Business Together

Have separate and clearly defined roles

Often best business practices that would naturally be put in place are skipped in a family-run business.  This may be due to assumption that formalisation of responsibilities is not necessary since "we are in this together." Wrong!

                            Defined roles, responsibilities and accountability are essential to the morale

                                   of any team member and to the effective operation of any business.

This is even more so in a family business partnership because the dissatisfaction and lack of resolution of issues travels from office to home and back again.  Pick roles based on expertise and fulfill them.

  • Define and document job descriptions.  Then - except for review meetings, or when asked - stay out of your partner's domain!

Have a plan and agree on it

In any business you need to have a plan and work that plan.  As the adage goes: "If you don't know where you're going, how will you know when you get there?"

                         Agreement on what you are aiming for and how you plan to get there is crucially

                                 important as it enables you to agree on strategies to implement.

An agreed plan gives you a basis for providing mutual support and avoiding conflicts resulting from assuming the obvious. (The 'obvious' is not always the same thing to two people!)

  • Develop a specific purpose statement.  Discuss it.  What is it that you are in business to do? (Hint: it's not just putting food on the table!) Write it down with 3-5 strategies to achieve your stated purpose.  Agree on it.

Act with mutual respect "inside" and "outside"

Clear definition of roles works only when each partner respects the position of the other.  It is no good to assign roles and titles, only to have them undermined, contradicted or ignored by the partner.  This behaviour will eat away both at the operational effectiveness of the business and the partners' emotional bonds.  And others see it too:  "The different management styles between myself and my husband used to lead the staff to try to play us off against each other.  We now work consciously to show a united position and mutual respect in front of the team" says restaurant owner, NL.

  • Treat your partner with the same respect and responsiveness with which you would treat any other employee.  You've mutually decided on the roles for a reason, so be accountable to one another.  Follow through, and your team will follow also.

Communication and listening
Effective communication is the key to understanding and harmony.  Here at Business Clarity we say, "Communication is the response you get."  We might speak a lot, expressing all that is on our mind, or say a few words.  In the end, if we're not getting the response we seek, something is wrong, either in the saying or the listening or both.  Two major obstacles to effective communication are competition (the overriding desire to be right) and the inability to listen (understand) what the other person is saying.  This is often because we are too caught up in our own position.
  • Practice communication.  Set the target of understanding the other's viewpoint and stick with it.  You may not always agree, but by keeping your end goal in mind and acknowledging that your partner is driven to achieve the same, you will move forward in greater harmony.

Picture why you're doing this and keep it in your mind's eye.

When you can visualise why you are in business together any disagreements fall into perspective and find resolution more easily.  Remind yourself that you are doing this because of the VISION you have of your future goals.

  • Write out your vision and see it in the present.  Share it, discuss it and remind yourself of it daily.  Each time you express your common dream out loud, or use it to drive your decisions, your business will move in that direction.

Do not make it 'all work and no play'

Especially if you are in business with your partner at home, it is all too easy to let the business take over your life.  You both need down time - to breathe, to enjoy personal time and family time.  That's when renewal comes, both personally and for he business. So, be the 'gatekeeper' for each other and don't let the business sneak in when it shouldn't.

  • Set a schedule for work time and non-work time and stick to it diligently!
    Use your business coach
    The steps above are easy to understand, but understanding is not doing.  Work with your coach to stay motivated and focused...
     
                         Your coach will hold you accountable for getting things done, so you are more likely to do it!
     
    The stakes are doubled - business and relationship - when you are in business with family.  We are here to help you make a success of it.
     
    ____________________________________________________________________________Business Clarity_________

Quote of the Month

 

"Once you're face to face with a prospect, the key to selling is the ability to listen - not the ability to talk." 

Phillip Matlick

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