1. Put agreements in writing
One of the most common mistakes when starting a business with relatives is relying only on verbal agreements. It is advisable to define in writing:
- Roles and responsibilities of each family member.
- Positions and decision-making areas within the business.
- Ownership or participation, where applicable.
- Compensation and working conditions for each person.
- Procedures for making decisions and resolving disagreements.
Having these points documented can help prevent a business disagreement from becoming a family conflict and makes it easier for everyone to understand what is expected of them.
It is also worth thinking about business continuity from the beginning. European Family Businesses highlights succession planning, clear responsibilities and governance structures as important elements in preparing a family business for the next generation.
2. Assign roles according to each person's strengths
Working with relatives does not mean assigning positions simply because of the family relationship. Responsibilities should be based on experience, skills, training and the ability to take responsibility.
In practice, it is useful to establish who will be responsible for areas such as:
- sales and customer acquisition;
- customer service;
- operations and service delivery;
- administration and financial management;
- team organisation and supervision.
The distribution will depend on each person's skills and experience. What matters is that everyone knows who is responsible for each area and which decisions they are expected to make.
Example of how to divide responsibilities in a family business
There is no single way to organise a family business, but separating responsibilities can help avoid duplication, clarify decision-making and make better use of each person's strengths.
| Area | Responsibility | Suitable profile |
|---|---|---|
| Sales | Acquiring new customers, following up opportunities and developing commercial relationships. | Commercial mindset, communication and negotiation skills. |
| Customer service | Managing enquiries, following up services and maintaining day-to-day customer relationships. | Communication, empathy and problem-solving ability. |
| Operations | Coordinating services, internal processes and the correct execution of day-to-day operations. | Organisation, planning and attention to detail. |
| Administration | Administrative monitoring, document control, costs and basic financial management. | Analytical ability, organisation and planning. |
| Management | Setting objectives, coordinating the team and making decisions about business development. | Strategic vision, leadership and decision-making ability. |
In a franchise, having established processes can make this organisation easier. You can learn more about how the MBE business model is structured.
3. Apply the same rules to family and non-family employees
One of the main sources of tension in a family business can be the perception of favouritism. Working hours, responsibilities, objectives, promotions and performance reviews should follow professional criteria regardless of family relationships.
Separating family relationships from professional relationships can also help build trust among other employees and make management more objective.
4. Define how decisions will be made
Not every decision should be resolved through informal conversations between relatives. It is useful to establish who decides, which issues require agreement and how disagreements will be resolved.
Listening to different generations can also be valuable. More experienced family members may contribute business knowledge, while younger members can bring different perspectives on technology, customers and new ways of working.
5. Focus on communication and separate work from personal life
Family trust is not a substitute for good business communication. Regular meetings can help review objectives, results, responsibilities and potential disagreements.
At the same time, it is important to establish boundaries. Discussing the business continuously outside working hours can eventually affect both the company and personal relationships.
6. Plan for succession and business growth
If the objective is to build a project that can continue into the next generation, succession should not be left until the last minute. It is useful to define how new family members will join the business, what training they will need and how responsibilities will be transferred.
For corporate, tax or succession matters, professional external advice may also be useful so that important decisions do not depend solely on informal family agreements.
What does a family business need to work effectively?
A family business needs clear roles, common rules, open communication, professional management and a plan for resolving conflicts and preparing succession. Family trust can be an advantage, but it should be supported by organised business management.
Starting a family business with an MBE franchise
A franchise can make some of these aspects easier because the entrepreneur starts with established processes, tools and a defined way of working. The experience and resources of the network can also help family members understand the operational and commercial requirements of the business.
In an MBE Centre, responsibilities can be divided across sales, customer service, operations and Centre management, with the team adapting as the business develops and customer needs evolve.
If you are considering starting a business with family, you can learn about the process to open your MBE franchise and assess whether the model fits your business project.
