Avoid sibling rivalry in your family business

As family business owners watch their children grow up, they may dream about the day when their offspring join the business and work as a team to ensure its ongoing success. Unfortunately, reality may not be quite as rosy. In fact, most family businesses do not make it to the third generation. Research has shown that one of the key factors contributing to family businesses not surviving is sibling conflict.

Differences between values and perspective between siblings may be exacerbated when they are working together. While they may tolerate each other's idiosyncrasies in a family setting, it is not as easy when their livelihoods may depend upon one another. Factored into this equation might be power struggles and competition for parental approval. These dynamics can become even more complicated when there are difficult past histories, protective spouses, step brothers and sisters and other siblings who may or may not work in the business.

Often times the conflict between siblings can be managed when the parent is there to make the final decision. In fact, not wanting to hurt their mother or father can be the catalyst for adult children putting their differences aside. However, when a parent leaves the business, whether through retirement or an untimely death, it can throw the family and the business into chaos. All these factors build the case for developing strategies for ensuring strong relationships and transparent communication between siblings.