Creating a Dream Team for the Family Business
~by Donya Zimmerman~
For your family business to succeed, you need to create a “dream team”. The “dream team” for the family business consists of:
- Insurance Agent
- Business Coach
- Board of Directors
- Management Team
- Human Resource Management
- Legal Team
- Support Team
The business owner, of course, is the first member of the “dream team” because they are one who starts, develops, runs, and grows the business. Also, employees play a valuable role in the daily operation of the business because without employees the business cannot run and operate smoothly. An attorney is an essential key player in any business because of the legal implications in operating a business. An attorney’s role can be best described as “protector of your business” from legal implications or legal issues that may come up unexpectedly.
- Review and draft of business contracts
- Set-up your business as a legal business entity (LLC, Inc., Corp, etc.)
- Represent the business in legal matters
- Provide guidance so that everyone is abiding by all the local rules, laws, and regulations in the operation of the business.
An accountant is essential to the daily operation of your business because the accountant deals with the finances of the business, ensuring that your finances and your taxes are in order to avoid tax trouble and minimize your likelihood of being audited by the IRS. Your accountant will help you properly record your profits, losses, and expenses for your business. But you should not rely on your accountant alone to handle your finances and taxes for your business. Always be aware of what your accountant is doing. You should have first-hand knowledge of how your accountant is handling your finances. A good way to do this is by setting up a system that enables you to organize and record your business financials on a daily basis.
You’ll also want a reliable bookkeeper. The bookkeeper deals with the record keeping of the business finances on a daily basis. A bookkeeper will make sure that all employees get paid on time, all debts owed to creditors are paid on a timely basis, all taxes owed are paid (payroll taxes, Medicare, social security taxes, FICA, withholding taxes, etc.), and all monies owed to the business are collected on a timely basis. The bookkeeper works hand in hand with your accountant to ensure that all the profits, losses, and expenses regarding the business are properly recorded. You should have a good relationship with both the accountant and bookkeeper because they are assisting you with the business finances.
You should also establish a good relationship with your banker. They will assist you with opening an account for the business and provide you with the appropriate banking tools needed to run the business smoothly. Also, having a good relationship with the local bank will help if the family business ever needs loans, lines of credit, or other financial tools needed to keep the business afloat financially.
An insurance agent is good to have because the family business will need insurance to protect the business from all kinds of problems and issues that may come up. An insurance agent can set your business up with the proper insurance to protect business assets, personal assets, and the financial future of the business.
Every business owner should have a business mentor. An ideal mentor for the family business is someone who has had a similar business. A mentor is there to provide you with sound advice regarding the business and to answer any questions about running a business when needed. A mentor will connect you with the right people and organizations who can assist in the growth and prosperity of the business. A mentor is there as a friend, counselor, and teacher for you to learn and grow from as a small business.
Remember to have that “dream team” together and ready when starting a business because they are there to ensure that the business is a success and not a failure.
This is the 5th article in my Starting a Family Business series.
- Read the first article here: The Basics of Starting a Family Business.
- Read the second article here: How to Properly Incorporate a Family Business
- Read the third article here: Steps to Incorporate a Family Business
- Read the fourth article here: Is Your Family Business Properly Insured?
Meet the Author: Donya Zimmerman
She is owner of Family & Community Mediation and Business Consulting (FACMBC) and Powerful Biz Woman (subsidiary of FACMBC), both of which are based in Baltimore, MD.
Services provided by FACMBC: Mediation and Conflict Resolution Services; Business Registration Assistance; Business Plan Drafting Assistance; Business Certification Assistance; and Business Organization Assistance.
If you are thinking about starting your own small business or non-profit organization, do not hesitate to contact me because I can show you how to do so.
For more information about Donya:
- Email: firstname.lastname@example.org
- Website: www.dzimmerman36.wordpress.com
- Facebook: @PowerfulBizWoman
- LinkedIn: Donya Zimmerman, JD
- Twitter: @FACMBC