# 5 essential leadership skills for family-owned businesses
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-06-23
Category: Uncategorized
Category URL: https://financedigest.com/category/uncategorized
Meta Title: Top Tips for Leading Family-Owned Businesses
Meta Description: Discover expert advice from Kirsty Prankerd, Managing Director of family-owned company Write from The Heart, on how to effectively lead businesses run by
URL: https://financedigest.com/5-essential-leadership-skills-for-family-owned-businesseshtml

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![By Kirsty Prankerd, Managing Director of family-owned company ](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/kirsty-prankerd-450x690-1736815623898-compressed.jpg)

_By_ **_Kirsty Prankerd,_** _Managing Director of family-owned company Write from The Heart._

_Whether you’re starting a [family-business from scratch or just looking to become an even better manager for your loved ones, knowing how to lead your business is vital](https://www.financedigest.com/acca-sets-out-magnificent-seven-attributes-vital-to-success-in-modern-business.html "ACCA Sets Out ‘Magnificent Seven’ Attributes Vital to Success in Modern Business"). In this article Kirsty Prankerd from the family-owned bespoke gift retailer_ [_Write  From The Heart_](https://www.writefromtheheartkeepsakes.co.uk/) _gives us her top tips for leading businesses run by families._

Whether you’re running a family-owned bakery or bookshop, having the right set of leadership [skills is vital for both your team](https://www.financedigest.com/what-skills-and-areas-of-knowledge-should-finance-teams-develop-during-2023.html "What Skills and Areas of Knowledge Should Finance Teams Develop During 2023? ") and your business. While it’s important for any leader to possess the right skillset, leaders of family-owned [businesses face a unique set of challenges](https://www.financedigest.com/the-maserati-100-one-hundred-business-disruptors-challenging-the-establishment.html " ‘The Maserati 100’ One Hundred Business Disruptors Challenging The Establishment"). As well as making sure the company is running smoothly, you also [need to make sure you’re treating loved ones with respect and kindness](https://www.financedigest.com/4-kinds-of-software-your-new-business-needs.html "4 Kinds of Software Your New Business Needs"), without blurring professional boundaries.

While this can be difficult, there are [ways to navigate these challenges](https://www.financedigest.com/bank-of-the-future-challengers-leading-the-way-to-cloud-adoption.html "Bank of the future – challengers leading the way to cloud adoption"). If you use the following leadership skills, you will be able to [run a successful family business](https://www.financedigest.com/4-signs-you-have-what-it-takes-to-run-a-business.html "4 Signs You Have What It Takes to Run a Business") with the help of your relatives.

## **Appropriate praise**

Praising employees is [important in any business](https://www.financedigest.com/the-importance-of-property-care-looking-after-your-business.html "The Importance of Property Care: Looking After Your Business"). But in family-owned [businesses you may find that you subconsciously don’t](https://www.financedigest.com/pitiless-machines-will-kill-your-business-if-you-dont-respond-now-warns-servion.html "‘Pitiless machines’ will kill your business if you don’t respond now, warns Servion") praise family members as much as you might a non-family member, as you take it as a given that your loved ones know you appreciate them. Try to praise your [employees for their good work](https://www.financedigest.com/voice-quality-matters-quarter-of-employees-working-from-home-still-experiencing-regular-connectivity-issues.html "Voice Quality Matters: Quarter of Employees Working From Home Still Experiencing Regular Connectivity Issues") regularly. But avoid overdoing it: make sure to give good feedback when their work warrants praise, as you don’t want to give your [employees the impression that their work is perfect if it actually requires improvement](https://www.financedigest.com/workplace-planning-software-cuts-costs-and-improves-employee-wellbeing-and-productivity-a-win-win-for-all.html "Workplace planning software cuts costs and improves employee wellbeing and productivity – a win-win for all").

You may also want to give your [employees rewards](https://www.financedigest.com/why-is-employee-reward-and-recognition-so-important.html "Why is employee reward and recognition so important?") for their hard work. For small successes, a voucher or a new personalised mug is ideal. And for larger achievements, a meal out or an accessory for the home, like a personalised clock or a photograph, are the [perfect gifts to show your family](https://www.financedigest.com/its-a-family-affair-new-tipi-build-to-rent-london-apartments-prove-perfect-for-family-living.html "It’s a family affair – new Tipi build to rent London apartments prove perfect for family living") members how much you love them and value their work.

## **Sensitive discipline**

Disciplining employees is never enjoyable, but this is [especially the case in family-run businesses](https://www.financedigest.com/document-admin-drains-productivity-businesses-especially-financial-services.html "Document admin drains productivity in all businesses, especially those in financial services."). However, doing so is vital if you want your [company to succeed and your employee to improve](https://www.financedigest.com/improving-company-culture-through-technology.html "Improving Company Culture Through Technology"). So to make the process as pain-free as possible, be as sensitive as you can.

Try to avoid disciplining in anger. If there has been a [big mistake](https://www.financedigest.com/virtual-meetings-the-big-mistakes-that-can-make-online-communications-fail.html "Virtual Meetings – The big mistakes that can make online communications fail") which has left you feeling irritated, wait until you’ve calmed down to approach your employee. When you are ready to discuss the incident with them, make sure you’re extremely clear about what the issue is and why it’s [bad for the business](https://www.financedigest.com/the-definitive-guide-on-how-to-get-a-bad-credit-business-loan.html "The Definitive Guide on How to Get a Bad Credit Business Loan"). And to end it on a positive note, explain the steps they can take to fix the [mistake and avoid](https://www.financedigest.com/top-ten-biggest-mistakes-by-novice-investors-and-how-to-avoid-them.html "TOP TEN BIGGEST MISTAKES BY NOVICE INVESTORS – AND HOW TO AVOID THEM") further incidents.

## **Instilling honesty**

While you may think that it’s easier to be open and honest with family members in the workplace, this [isn’t always](https://www.financedigest.com/fintech-at-risk-why-multi-factor-authentication-isnt-always-the-answer.html "FinTech At Risk: Why Multi-Factor Authentication Isn’t Always the Answer") the case. In fact, it may be even more difficult! Loved ones don’t want to let each other down or criticise each other, so they may keep concerns to themselves. This isn’t just bad for workplace morale, but it can be bad for the business too.

In order to encourage employees to be more open, lead by example. Admit to your own mistakes to show that it is okay for employees to do the same. And if your [family members don’t enjoy giving](https://www.financedigest.com/hodge-webinar-gives-insight-into-uncovering-family-finances.html "Hodge webinar gives insight into uncovering family finances") you feedback, have an anonymous suggestion box so they can feel comfortable in making requests or passing comments.

## **Delegation**

Any [business owner](https://www.financedigest.com/ladbrokes-owner-entain-buys-sports-media-business-365scores.html "Ladbrokes owner Entain buys sports media business 365scores") knows that running a company is a lot of work. And as much as the owners would like to do it all by themselves, it’s important to get some employees to help out. You may be wary of doing this as you don’t want to feel like a burden to your family. But by sharing your tasks you will help both your [business and your employees grow](https://www.financedigest.com/5-considerations-when-trying-to-grow-your-business-during-a-pandemic.html "5 Considerations When Trying to Grow Your Business During a Pandemic") and improve.

When it comes to delegating tasks, make sure that you give the right [jobs to the right employees](https://www.financedigest.com/finding-new-home-easy-job-cambridge-employees.html "Finding A New Home Is An Easy Job For Cambridge Employees"). For example if you’re looking for someone to handle clients, choose a confident person with great [people skills](https://www.financedigest.com/senior-decision-makers-reveal-people-skills-are-an-employees-most-valuable-asset.html "Senior decision makers reveal people skills are an employee’s most valuable asset"). And remember that honesty is vital, so [encourage everyone within the business](https://www.financedigest.com/why-now-is-the-time-to-implement-a-time-saving-business-model-encouraging-team-members-to-discuss-their-challenges.html "Why now is the time to implement a time saving business model, encouraging team members to discuss their challenges") to let you know if any extra responsibilities are becoming too much.

## **Encouraging work-life balance**

Many of us struggle with work-life balance, but this can be even more tricky to handle when [working for a family-owned company](https://www.financedigest.com/alone-together-how-to-maintain-a-positive-company-culture-while-working-remotely.html "Alone together: How to maintain a positive company culture while working remotely"). The whole [company will want to put their all in so they don’t](https://www.financedigest.com/companies-that-dont-upgrade-their-financial-processes-this-year-will-get-left-behind.html "Companies that don’t upgrade their financial processes this year will get left behind") let one another down. But if you don’t have the right balance, this can actually do the business more harm than good.

To encourage work-life [balance in your family-run business](https://www.financedigest.com/best-of-both-worlds-the-importance-of-balancing-innovation-with-long-term-business-strategy.html "BEST OF BOTH WORLDS: THE IMPORTANCE OF BALANCING INNOVATION WITH LONG-TERM BUSINESS STRATEGY"), make sure that all overtime is paid and that staff leave on time whenever possible. You should also avoid talking about the business outside of [work with one another to give yourselves boundaries between professional and home](https://www.financedigest.com/savile-row-designer-on-working-from-home-winter-attire.html "Savile Row Designer on Working From Home Winter Attire") life. And remember to lead by example and give yourself a break too — you deserve it!

**Running a family-owned business comes with many joys, and plenty of challenges too. If you use these leadership skills, you should be able to create a successful business for you and the family to be proud of.**


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