Outward emphasis can benefit the family business.

All too often, family problems become business problems. This is particularly true when the entrepreneurial owner adopts an inward focus and sacrifices fundamental business principles for immediate benefit of the family.

The following are examples of problems to avoid.

You don't have a succession plan in place

If you don't have a formal succession plan, today is the best time to begin structuring one. Prepare your family and key employees for the inevitable leadership change by cultivating your vision for the business. It may be one thing to name a successor and quite another to turn over the reins. You must conduct some honest soul searching and carefully plan how you will communicate your vision and win family support for the transition. The younger generation needs formal training in making money. Being a family member doesn't mean that one can successfully operate a business. It may take more than just working there. Potential business leaders need good formal training and practical experience. Whatever educational route your child takes, make sure he or she receives good training in running a business and making money.

Conflicting family and business goals

Know the difference. Don't sacrifice good business sense to accommodate your own unrealistic expectations or feelings about a family member's performance, abilities, attitude or future with the business. You must learn to objectively analyze circumstances (or put in place a board with non-family consultants mixed in) to make decisions that ensure the ongoing health of your company. This commitment will help you keep an outward perspective and face organizational and market realities. Both your family and business will benefit in the long run.

This article was contributed by the Texas Family Business Association.