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Managing Conflicts in Family Business

Managing Conflicts in Family Business: Strategies for Resolving Differences and Maintaining Harmony

In many respects, family companies are unusual. They confront the same issues as other businesses, such as competitiveness and financial management, but they must also cope with family relations. This can lead to confrontations that are particularly difficult to resolve. The capacity of family members to work well together is critical to the success of a family company, and disagreements can jeopardize that success.

This article will look at dispute resolution solutions in family companies. We will cover the most typical causes of family business conflicts, their impact, and the significance of resolving them.

We’ll start with the unique challenges faced by family businesses. 

Unique Challenges in Family Business

Unique Challenges in Family Business


Family companies are special in many respects and encounter obstacles not shared by non-family businesses. While having a family-run business has many advantages, such as loyalty, trust, and shared values, a number of particular problems can make operating a family business more challenging. Here are some of the most typical issues that family companies confront.

  1. Blurred Barriers between Family and Company: It can be difficult to separate personal and professional interactions in a family firm. It may be difficult for family members to establish clear boundaries and distinguish between family and commercial matters. This might lead to disagreements and problems in making decisions.
  2. Family Issues: Family companies are especially sensitive to personal connection difficulties. Family rivalry, power battles, and financial issues can cause tension and conflict that is difficult to overcome.
  3. Lack of Objectivity: Family members may struggle to separate their emotional sentiments from business decisions due to a lack of impartiality. This might lead to judgments based primarily on what is best for individual family members rather than what is best for the business.
  4. Limited Access: A family business may be reluctant to hire outside talent or hire people with outside expertise due to limited access to outside talent. It can have a detrimental effect on the ability of the business to innovate and grow as a result.

Family companies encounter particular hurdles that might make managing and expanding the firm tough.

Next, we will learn about some common sources of conflicts in a family business. 

Common Sources of Conflicts in Family Business


Common Sources of Conflicts in Family Business

Family businesses are unusual in that they involve personal and professional connections, which can make conflicts more complex and difficult to handle. Controversy is a regular aspect of any business, but conflicts can rapidly turn personal and emotional in a family firm. Following are some frequent reasons for conflict in family businesses.

  1. Generational Issues: This may be a fantastic thing when different generations of the family are involved in the business. Having newer generations in the industry gives fresh perspectives. Younger family members, for example, may be inspired to apply cutting-edge technology. But, there may be issues. A parent who begins a business may regard it as his or her kid and may be opposed to allowing their actual children to make changes in how things are done. Younger family members may be disappointed by their inability to progress.
  2. Communication Breakdowns: Misunderstandings and disagreements can occur in any organization but can be extremely detrimental in a family firm. Family members may have various communication styles or may be afraid to express themselves for fear of sparking conflict. This might lead to miscommunication and damaged sentiments.
  3. Role Ambiguity: Roles and duties in a family firm are sometimes less clearly defined than in a non-family organization. Family members may play several responsibilities, and it is not always evident who makes choices or carries out tasks. This might lead to arguments and confrontations over who should do what.
  4. Sibling Rivalries: Sibling rivalries are a major source of conflict in family enterprises. Even in families with solid connections, hidden tensions or resentments might arise when family members work together in a business.

Family businesses are distinguished by their incorporation of personal and professional interactions. Conflicts might become more complicated to handle as a result. Recognizing the frequent reasons for conflict in family companies can assist family members in working more successfully together and building a stronger, more profitable company.

In the next part we will discuss dispute resolution tactics.

Effective Strategies for Resolving Conflicts

Effective Strategies for Resolving Conflicts


Disputes are unavoidable in any organization, but they may be especially difficult in family firms, where personal and professional connections can get entwined. Good dispute resolution is critical for any firm’s success, but it is more critical in a family business with higher stakes. These are some effective dispute-resolution tactics for family businesses.

  1. Open Communication: It is essential for resolving issues in any organization, but it is especially critical in a family firm. Encourage all family members to voice their thoughts and concerns openly and courteously. Ensure that everyone gets an opportunity to be heard and actively listens to one another to fully comprehend diverse points of view.
  2. Set a Clear Understanding: When disagreements emerge, it is critical to understand where the other person is coming from. Put yourself in their shoes and consider the matter from their point of view. This might assist you in finding common ground and cooperating to create a solution that works for everyone.
  3. Call in a Third Party: Some issues are too tough to handle alone. In certain situations, bringing in a neutral third party, such as a mediator or consultant, can help to smooth the resolution process. A neutral third person can offer an impartial viewpoint and assist family members in finding common ground.
  4. Create a Procedure for Resolving Conflicts: Having a conflict resolution method: Having a clearly defined procedure for resolving problems can assist family members in working through differences more efficiently. Steps should be taken to identify the problem, acquire information, brainstorm solutions, evaluate options, and execute the chosen solution.

It’s important to develop effective conflict resolution strategies to help family members work together more effectively and build a stronger and more successful company.

As we go through the following section, we will discuss the importance of managing conflicts and how to do so.

Discuss the Importance of Managing Conflicts 

Discuss the Importance of Managing Conflicts 


There will always be conflicts in business, and they can arise for several reasons. Conflicts are even more challenging in family businesses because personal and professional relationships are intertwined.

Here are some of the reasons why conflict resolution is so important.

  1. Maintaining Family Ties: Family companies are special in that they entail both personal and professional interactions. Disputes may rapidly turn personal and emotional, resulting in strained relationships and family alienation. Even in commercial differences, effective conflict management may assist in sustaining family connections.
  2. Avoiding Legal Issues: In a family business, conflict can occasionally develop to the point of legal action. This may be expensive and time-consuming, harming both business and family connections. Family members who manage their problems successfully might avoid the need for legal action and discover more productive methods to address their issues.
  3. Sustaining a Positive Corporate Culture: Conflict may harm the company culture, resulting in low morale and work satisfaction. By properly handling disagreements, family members may help to create a strong workplace culture in which everyone feels appreciated and respected.
  4. Promoting Open Communication: Conflict resolution can promote open communication among family members. When disagreements are addressed productively, trust and collaboration are created, making it simpler for family members to communicate and collaborate efficiently.

Conflict resolution is crucial in any organization, but it is more critical in a family firm because personal and professional connections are linked.

Bottom Line 


Finally, handling disputes in family companies necessitates a unique set of talents and tactics not found in other types of organizations. Family companies have particular problems, such as blurring boundaries between family and business, family issues, a lack of impartiality, and limited access, making it difficult to run and expand the firm. Generational difficulties, communication breakdowns, role ambiguity, and sibling rivalry are common drivers of conflict in family companies. They can produce personal and emotional disputes that necessitate particular dispute-resolution strategies. Open communication, clear understanding, and bringing in a third party when necessary are all effective dispute-resolution tactics. Conflict resolution and harmony are critical for the long-term prosperity of both the family and the company.

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Ashish Verma

Ashish Verma is the founder and CTO of Secvolt, with close to 10 years of experience in the IT industry. He has been the technical backbone of the company and has worked tirelessly to make the technical infrastructure robust. He is a passionate entrepreneur who generates solutions that have the potential to bring change.

In order to ease the client’s interaction with Secvolt, he has strived to develop the business’s technological foundation and establish a user-friendly platform. Ashish has also contributed substantially to smoothening the company’s administration and ensuring that there are no lacunae in the broad structure of the organization. 

Early Years

Coming from a middle-class family, he was aware of the problems that people faced while using technology. He sought to create something that was simple to use yet had a powerful effect. As he studied computer science, he became eager to offer a solution to real issues. He began his professional career at Amdocs, where he gained expertise in client management while catering to more than 20 clients. Later, he moved to Citicorp, where he had exposure to the investment industry. His time at Amdocs and Citi enabled him to produce high-standard, efficient, and scalable technical infrastructure.

He left corporate jobs for his startup because he was passionate about working on the concept of a smart city platform. He expanded the concept internationally and even collaborated with Global Dignity-Kuwait. Things didn’t work out for him the first time. He states, “My failures didn’t stop me from experimenting and trying new things.” He rose from the ashes like a phoenix and founded FewerClicks, an End to End IT solution company.

He worked on the creation of Solster Finance, a decentralized financial platform based on the Solana blockchain. He created this platform single-handedly which has helped the team raise a $1M investment and a revenue of more than $5M within 6 months of launching. 

He has previously worked on many blockchain technologies and cryptocurrency ventures, which include Decentralized Finance Applications (Defi), Decentralized Applications (Dapps), File Contracts (SIA, record-keeper), Smart Contracts (rust, solidity), and NFT Development. His experience and effective communication have helped many team members understand Secvolt effectively and the underlying technology it is powered by.

He possesses the ideal combination of strategic thinking and excellent business insight. He is responsible for formulating technical aspects of the company’s strategy to guarantee alignment with business objectives. With his drive to experiment with new technologies, he has helped Secvolt achieve a competitive edge. Being in charge, Ashish never holds back in encouraging the different departments to make profitable use of technology, helping to grow as an unstoppable team at Secvolt!

Hanif Shaikh

Hanif Shaikh is the founder and CMO of Secvolt, with over 8 years of experience in the industry. He plays a crucial role when it comes to the growth of Secvolt. Since the beginning, he has acted as a mentor for each and every employee of the company, and he makes an effort to be accessible to his staff anytime they need him. 

Hanif first entered the Blockchain and Crypto world in 2016, and nothing has stopped him since. He views blockchain as a transparent platform that provides authority and accountability back to the people. He consistently believes that “overcommunication is better than miscommunication.” He has lived by this motto with his staff, clients, and networks.

Early Years

Hailing from Gujrat, a state in India, he is following his dream to contribute to making this world a better place. In the process, he has struggled, made some mistakes, and learned lessons from those mistakes to achieve success in life. His entrepreneurial attitude dates back to his childhood when he learned from his father’s business and aspired to have it all. He came from a humble background and had ambitions to succeed in life.

He has developed two successful businesses from scratch, and in the process, he has inspired young people to start their own businesses. He was an integral part of the Quora Mumbai Meetups and helped it become a great success in a short period of time. Later, he began organizing meetups to raise awareness about blockchain, cryptocurrencies, and their applications. He also shared his knowledge of ICOs, highlighted reputable ICOs, and established a small cryptocurrency community on WhatsApp groups.

He chose to go on a Blockchain Tour in India in 2019 and met some fascinating people. Throughout his journey, he has been able to build an extensive and robust network that has aided Secvolt’s growth. Because of his expertise and understanding of the Crypto Industry, he has been featured on several news channels and has advised the youth on the subject.

He is in charge of the company’s marketing operations and is responsible for developing its marketing strategy and vision. He oversees a group of passionate marketing professionals and plans promotional strategies with the goal of making  Secvolt a global brand. 

He is a perfect blend of a practical attitude and innovative business acumen. He believes in the ability of individuals to perform exceptionally well when given an environment to experiment and explore their passions; a culture that he has built at Secvolt.

Divakar Choudhary

Divakar Choudhary is the founder and CEO of Secvolt who has been trading for more than six years now. He started the business in 2018 with the conviction that if anybody could dominate the market, it was him. He poured all of himself into the business and turned Secvolt into a market-beating machine.

Divakar developed the fundamental quant models that perform risk management and capture alpha using his skills from the previous organization and his time spent in the market. In order to make the system effective, he backtested risk mitigation algorithms and worked on them for more than 4 years to produce results.

Early Years

He began his crypto journey in 2013 after getting his first gaming Laptop and melded in with the Blockchain community like sunbeams on the ocean. He created many YouTube channels at the age of 15 and businesses by the time he was 17. Technology has always piqued Divakar’s interest. He endeavored and succeeded at freelancing in his effort to achieve financial independence. However, he soon realized that freelancing would always keep him in the rat race, and the only way out would be to build a machine yielding generational wealth.

Soon, he started trading using his own capital but suffered a loss in the market. He says, “95% of people lose money & the rest 5% make money from the loss of those 95%.” He then began working on an effective technique to be included in this 5% after losing part of his own assets during the early stages of trading. He began evaluating quant strategies using statistical models.

With his methodology, he once produced a 20% ROI in a single month. With the zeal of creating something exceptional, he borrowed money from friends and family and generated decent returns for them using primitive quant models. Month after month, the system’s efficiency and the competence of the man behind it allowed for excellent market returns.

In the beginning, Divakar worked on his laptop for over 18 hours. It took every ounce of his energy as he executed about 530+ deals daily for 4 years to create this company from the ground up. In 2021, he increased his volume by 827%, trading a total of $52 million and hitting a single account.

In his words-

“What does becoming “THAT” GUY mean to you? Who did you need when you were young? Be that person!”

He is a perfect example of someone who followed his passion and made a fortune from it! He dreamt of creating generational wealth as a youngster, envisioned it as an adult, and is now making it a reality with Secvolt!