Small Business Sunday: Separating Feelings From Facts in Family-Owned Businesses
Welcome to the second installment of Small Business Sunday, our blog series dedicated to helping small business owners feel more confident about the financial side of their business—from accounting to payroll to broader decision-making.
In our past blogs, we’ve talked about how TSK consultants are not just number crunchers; we dive deep into the issues that affect your company’s finances. Sometimes, those issues are personal.
In our experience working with small businesses, we’ve encountered several that are family-owned and operated. When families do business together, there are plenty of opportunities for feelings to become involved. This can lead to interpersonal conflict—and, down the road, will affect the company’s financial performance.
So, what is to be done when family members disagree about important financial decisions? There is a simple solution, but it requires everyone’s buy-in: all parties involved must acknowledge that numbers simply don’t lie. They can be interpreted different ways, but they are objective data. Once everyone is in an agreement on this, then issues can be dealt with accordingly.
In an earlier post, we discussed why consulting a financial professional can help you make more informed business decisions. The same is true in this scenario: a third party lends a fresh set of eyes. Their perspective helps decision makers see the facts that are otherwise tainted by personal feelings stemming from lifelong familial relationships.
If you are involved in a family business and find yourself unable to make decisions objectively, we can help. Get in touch with a TSK consultant today.