There are many benefits to running a family business. You and your family derive pride, fellowship, loyalty, continuity and shared success through the business. It also means everyone’s financial stability and success rest with this primary source of income. Because of the shared financial risk, managing a family-owned business presents unique challenges. When close relatives work together, emotions can often cloud business decisions. Whatever the purpose of the business, the special relationship between members of a family can get in the way of effective business decisions upon occasion. To help manage the business, prepare a written plan. A plan can guide operations and create an objective standard for everyone to measure performance and results.

When you invest your own money and operate your own business, you have accepted the independence that comes with being your own boss. And as the manager, you are rightly concerned with the economic realities of running a business. However, if other family members have also invested in the business, they may rightly feel that they should have a strong say in the business’ operations. Family considerations and disagreements can get in the way of what should be purely fact-based decisions. In the real world, emotions come into play. Plan for professional procedures to help navigate disputes, so the business can operate effectively.

Problems associated with managing a family-owned business usually result from the dual relationship between members of the firm. For example, when the current general manager steps down, choosing among many qualified members of the family who want the job, may be more difficult than choosing a pool of unrelated candidates. Another problem arises when there is pressure to hire an unqualified member of the family. It is easier to turn down a colleague, than it is someone who will be sitting across from you at dinner.

One solution may be to hire a general manager or chief operating officer, who is not a member of the family. This works only if all members of the family agree and discipline themselves to abide by the decisions and recommendations made by this executive. When decisions are in favor of or in opposition to positions held by various family members, there must be a clear method to allow this person decision making power. You decide how much latitude your executive has and clarify when you want the final review in a decision. Give authority with the responsibility.

Consider outside advice in developing a management plan to bridge family differences. A volunteer business counselor can offer insights, procedures and assistance in preparing a conflict resolution plan or a succession plan to bring an outside executive to the table as a manager and facilitator. The SCORE® Association (Service Corps of Retired Executives) offers free and confidential small business counseling. There are more than 12,000 volunteer business counselors throughout the country donating their expertise to help small business succeed. SCORE® has assisted 3.5 million entrepreneurs. Call 1 (800) 634-0245 for a referral to the SCORE® chapter nearest you.