Carson City Attorney, Will Wagner, Explores the Challenges of Running a Family-owned Businesses
Will Wagner with Allison MacKenzie Law Firm specializes in legal Business, Real Estate, Litigation, Appellate, and Administrative Law. A proud Nevada Native, he attended the University of Nevada, Reno. He later earned his law degree from the Sandra Day O’Connor College of Law at Arizona State University where he graduated cum laude.
In his recent article in Northern Nevada Business Weekly, Will explores the challenges of running a family-owned business.
He notes that running a family-owned business can present both advantages and disadvantages while competing in the marketplace. Further, it is vital to understand that family dynamics in a business can add complexity to operations that competitors may not be burdened with. However, the personal and financial payoff can be immense for businesses that overcome common obstacles and pitfalls of working with family members.
Some of Will Wagner’s practical and legal suggestions for successfully operating a family-owned business includeL
While family-owned businesses often begin as a hobby or an idea among family members, as the business grows, it is imperative to create a legal structure to operate efficiently. Be sure to establish yours by creating an entity, registering with the Secretary of State’s Office, establishing separate bank accounts, and developing a business plan.
Establishing Clear Roles:
Make these roles as “official” as possible by creating titles and providing business cards. It would be prudent to require a family member to sign the same employment agreement that non-family employees sign, and subject family members to the same performance reviews as non-family employees.
Balancing Family vs Work Time:
Establish clear working hours and keep some family activities work free.
Creating a Succession Plan:
Plan ahead and have an exit strategy.