Are there periodic reviews of profit and loss statements and other financial reports?
In these reviews you can compare your operating ratios to those for your industry. It is also helpful to review your cash flow projections to see what, if any, changes are needed in your financial planning. Do you have an organization chart? You may need only a simple organization chart to show accountability and to establish a chain of command. In a family business, accountability and chain of command should be spelled out so that the one who is the chief executive of the company has the “mandate” he or she needs for managing. Do you use job descriptions for your key personnel? When you and your key personnel write descriptions for their jobs, you and they have a clear understanding of what is to be done and by whom. Such an understanding is essential in any small business but especially critical when relatives are involved. Spelling out duties may not prevent conflicts between you and an in-law, but such detail can help you resolve misunderstandings, if and when, they occur. In addit
