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Dealing With Money Fights in a Family Business

Dealing With Money Fights in a Family Business

Disagreements are expected in any family dynamic, but when you add business to the mix, things can get even more complicated.

Family businesses experience fewer conflicts that non-family businesses, according to the Harvard Business Review. However, when problems such as financial issues do arise, they can become much more intense, and the lasting impact can be much greater. If you don’t resolve a money conflict today, it could end in siblings feuding for years or cousins refusing to speak with one another.

To resolve money issues as quickly and pain-free as possible, Forbes offers some advice on how to deal.

Step 1

Recognize that everyone involved in the situation may be reacting differently. While you may be angry, someone else may feel sad and hurt. Prior to opening the floor for conversation, mentally prepare for the different viewpoints and responses that may be presented to you.

Step 2

Get to the core of any other issues that the fight may be masking. For example, do you doubt your cousin’s loyalty to the business? Are you upset about your current role or earnings potential? Are your feelings hurt from an outside situation? Having an open conversation can help resolve these issues. Dealing with the emotional side of the argument can help you see the financial situation more clearly.

Step 3

Consider bringing in an outside mediator or consultant to help determine next steps to resolve the monetary problems. Even with emotions set aside, close relationships and devotion to the business can sometimes cloud judgement. An outside party can provide unbiased expert advice.

About Hilary Welter

Hilary Welter

As the member services and communications coordinator, Hilary contributes to all member-focused communications efforts. She assists with communication aspects of member recruitment and retention and contributes to the marketing of member programs and benefits. Additionally, she is the voice behind NRHA and Hardware Retailing social media accounts. Hilary is currently working remotely while traveling abroad, tapping into the international hardware markets along the way. To follow her adventures, visit www.hardwareretailing.com/NRHA-Abroad starting August 1, 2016.