A dispute is something very normal at home, at work, in relationships or in anything that involves two or more people. Therefore, when a family holds a business together, it is possible to have conflicts either between siblings or between siblings and their parents. The disputes can be about money, ownership or management of the business. You may be handling your business very well and in harmony right now, but it is good to know how to handle a dispute in case it arises.
Here are some tips for the same:
1. Rely On Legal Experts
You may be doing great when it comes to business, but you may never know how to handle serious disputes especially when they involve family business. If you already have a family lawyer, fill him with information about your family business so that he can know how to handle an issue when it arises. Sometimes it would take the efforts of a professional who is not a family member to resolve a dispute in the family business.
2. Focus On Meeting Regularly To Discuss Family Business Matters
To keep your family relationship and business together and in harmony, you must meet regularly to not only settle any underlying disagreement but also to discuss overall business issues. Every person who owns some shares in the business must be notified about the meeting among other members of the family who may influence the business. It is good to have some crucial professionals attend the meeting too. These professionals include the accountants or lawyers to ensure everything spoken during the meeting is as it is and everyone remains objective. These meetings are very important because the family will always keep people together and of course streamline any issue that needs to be handled.
3. Work With Formally Written Policies
Most people make a mistake of handling things casually in the family business until it’s too late. Without any written policy, it can be very hard to resolve a dispute based on oral agreements or nothing. In this case, just like any other business would do, have a formal policy drafted and be cosigned by all influential members of the family in the business. All the decisions made in business operations should be based on the policies set, and if anyone goes against any, then they should face the repercussions agreed upon. A business without rules, whether family or not is like a country without laws and therefore allowing everyone to do anything they feel like doing.
A family business is a very good venture because it will be inherited from one generation to another and therefore keep the legacy going. However, if people keep on fighting about different issues, it may collapse on the way and end up in closure. Therefore, it is good to be prepared on how to solve any conflict in the family business. When hiring a family lawyer among other crucial professionals, it is good to be very objective to avoid discrimination.