While many companies say they’re “like a family,” yours takes the classification to the next level—you are a family. As they say, blood is thicker than water. Through thick and thin, you and your kin are steering the ship that is your family’s business legacy. Whether you run a generations-old bakery or a multi-million-dollar e-commerce corporation, many dynamics tend to repeat themselves when it’s all in the family.

Here are four tips for running a successful family business, no matter the specifics.

Ability and Skillset Override Lineage

Family ties are great. Nepotism is not. Part of building out a qualified, productive workforce is filling various positions with the best people for the job. Just like you would ask a complete stranger for a resume and conduct an interview before hiring them, make sure that family members meet the qualifications for certain positions before they get them. This will keep everyone sharp and continually developing their abilities, as they’ll have to prove their value in a competitive workforce.

Create Appropriate Boundaries

Running a business is not like gathering around a holiday meal with family; it requires professional and personal boundaries to make it work. While the threshold is different for each company based on its business model, the principle remains the same. One Italian coffee company has a policy: family members cannot report directly to a relation. As a fourth-generation employee from this company tells CNBC, “We have very strict family rules, we could not have more than one (person)… per family branch within the same company or area.” This model can work for larger companies with a fair number of non-family employees mixed in.

If your business is smaller and everyone is family, you can still create boundaries, perhaps by keeping certain topics off-limits during work hours so as to remain strictly professional, or by using company-approved channels for communication rather than, say, texting.

Leave Room for Generational Change

Businesses should change over time, but that doesn’t mean the transition is always comfortable. Many family businesses juxtapose veteran leaders used to doing things one way with youngsters who want to shake things up. A culture of healthy growth and change is a good way to gauge how the company is doing over time. How can you make it work without tension?

For instance, let’s say a recent college graduate joins her family’s company and suggests a drastic technology update—out with the old, in with the new. Her parents and grandparents may not be so keen to take on the additional hassle and risk. After all, they’ve always done things a certain way. The younger employee could prepare a proposal to help them see the value of investing in extra tech equipment, and show them small business insurance quotes demonstrating how a slight monthly bump in commercial premiums would cover the fancy new setup. With this extra persuasion, the older generations may be more likely to agree to modernize their beloved company.

Communicate Professionally, Not Personally

It’s easy to assume your family can always tell what you’re thinking because they’ve known you since day one. This can actually lead to fractured and passive-aggressive communication in the office. Instead, communicate clearly just like you would with a coworker unrelated to you. And, most importantly, afford your family members the same respect as you do non-family members, whether they’re older, younger or your identical twin.

Running a successful family business is a delicate balancing act. Yes, there’s great camaraderie and a shared legacy to build—but relatives can only do so with open communication, appropriate boundaries and smart hiring decisions.

Shift Frequency © 2017 – 4 Tips for Running a Successful Family Business