Main Menu
Home / Career / 7 Rules for Avoiding Conflicts of Interest in a Family Business

7 Rules for Avoiding Conflicts of Interest in a Family Business

When dealing with family issues, business issues, and ownership issues, an informal management style will not suffice. Carolyn M. Brown writes for Inc. with seven tips to best maintain a family business.

Family Comes First, Sometimes

Here are the rules, in quick succession: Only put family members on payroll if they make a tangible contribution to the business, and make their job expectations clear and inarguable. Think of family and non-family employees as all the same and promote regardless of such status. Do not punish or praise someone or exempt someone from punishment or praise as a result of familial relation. Make it apparent to all employees that family does work within the business, but keep all employees equally abreast of business happenings. Do not confuse family and business needs, meaning do not charge the family vacation as a business expense. Outside of work, let work rest and stick to talking to family about family things. Lastly, use a “family council” to address family matters; a family council may consist of owners who are not necessarily employees, and this council’s membership can be revised every couple years to account for fairness and new generations.

For elaboration on these seven rules, you can view the full article here:

About John Friscia

John Friscia is the Editor of Computer Aid's Accelerating IT Success. He began working for Computer Aid, Inc. in 2013 and continues to provide graphic design support for AITS. He graduated summa cum laude from Shippensburg University with a B.A. in English.

Check Also

The Rise of Botnets in the Age of IoT

One of the greatest dangers to future (and current) cyber security is botnets. This short …

Leave a Reply

Your email address will not be published. Required fields are marked *

Sorry, but this content
is for our subscribers only!

But subscribing to ACCELERATING IT SUCCESS is FREE and only one click away!
Join more than 40,000 IT Professionals and get the best IT management articles to your mailbox with Accelerating IT Success!

Unsubscribe at any time