Some Family Situations Require Advice That Professional Advisors Can’t Give

Family-run businesses demand close interpersonal ties that very often lead to fulfilling and enriching relationships inside and outside the professional environment. When problems arise, professional business advisors may not have the adequate training or experience to deal with non-business-related setbacks. At this point, the services of psychologists or social workers may need to be considered.

By now you know that family businesses are different from other businesses. Usually, these differences stem from the fact that the owners and operators of the business are related to one another. Family relationships can be very intense and deep-rooted.
Consequently, certain behaviors outside of the family are ingrained and may permeate the interaction among family members in the business setting. These behaviors are affected not only by the relationships between family members, i.e., brother/sister; father/daughter; mother/son, but also by relative age, nonbusiness achievements and activities throughout family life.

Problems Begin Within the Family
The problems that arise in family businesses can be the result of deeply ingrained behaviors and family dysfunction. This family dysfunction can severely impede any kind of success in the family business. Sometimes a lawyer or accountant can have a plan for succession, transition or day-to-day tax or business planning that is perfect in every way but will not be carried out because of intrafamily squabbles.
Hence, transactions that would be performed without second thought among unrelated parties may never occur in a family business setting.

Find a Solution Quickly
The family, lawyers, accountants and other connected persons are generally ill-equipped to deal with problems that are so extensive that they threaten the life and health of the business. At this point, a mental health professional’s consultation may be needed.
Psychologists and social workers who work in this area may be able to help identify the problem and foster the kind of communication that can allow family members to work in their best interests and in the best interests of the family business.

When the situation reaches the point where family members cannot even communicate among themselves in a civil manner, the business operations will eventually reach a stalemate and nothing will be accomplished. At this point, even if an action is good for everyone involved, family members who want to be vindictive to one another will stymie or stalemate the plan.

The family’s professional advisors need to recognize early that the business is heading in this dangerous direction, because the longer it is allowed to continue, the more difficult it will be to fix the problem. At that point, professionals trained in interpersonal relationships, particularly professionals with proven experience in dealing with family business situations, can be helpful in moving things along. In fact, employing the services of these types of professionals may be the only way to get things moving again.
If the problem is deeply ingrained, you should, however, expect no quick resolution. Sometimes the process takes a long time, and, in the interim, business activities can be severely crimped. However, you may find that this is the only means to handle the situation.

Everyone’s Input Is Important
When selecting a family business consultant, such as a psychologist, the company’s regular advisors should be involved. Find out whether the process will be open or whether communication will be privileged. If all interaction is not shared with family business members and the professionals involved, a severe impediment to counseling the family from a tax, business and legal standpoint may result.

In addition, family members should find out how long and what form the process is expected to take. While calculating the length of time is difficult if not impossible, at least everyone should understand up front approximately what is involved. Otherwise, family members may feel anxiety.

The line between problems that can be solved using your regular routine and those that require special professional intervention often blurs. Professionals and the family business members alike must be alert to the possibility of the need for a psychologist or social worker or other family business consultant. If the need does arise and is recognized early, many problems can be averted.