In India, a whopping 95 percent of all businesses are family-owned, according to a newly released guidebook for family businesses. In Latin America, 90 to 98 percent businesses fall into this category while in North America they account for 80 to 90 percent. In the US, family-run businesses generate 60 percent of the country's employment and 78 percent of all new job creation. On a worldwide basis, these businesses employ more than 75 percent of the workforce. These figures demonstrate the significant role family-owned businesses are playing across the globe.

What is the key to success in a family-run business? I would like to share briefly some of the recommendations I have found interesting in the guide: first, having a clear vision and sharing it with the family, board and employees of the company; second, putting a strong corporate governance structure in place; third, analysis of every possible legal aspects of the business; fourth, building a competent advisory board; fifth, motivating and respecting the needs of the human resources; and last but not the least, having a good succession plan.

Most of our family-run small businesses do not pay much attention to these things. While running a business, they like to rely more on common sense and less on rules. They know the right thing but lack the urge to carry it out. Many a time, they just procrastinate and procrastinate. Such an approach, however, may prove fatal for a business, particularly when it starts growing to a higher level — without a corporate governance structure it may end up in ruins; lack of knowledge about the legal aspects of running the business may lead it to legal hot water; not having a good succession plan may result in a split, and so on.

Recently, I had a discussion with some small business owners on this issue and they pointed out some common features successful family businesses typically share. According to them, these businesses are usually frugal in both good times and bad — they focus on resilience, carry little debt and invest more equity into projects. Also, they draw a clear line between family and business. In addition, these firms successfully create some committed entrepreneur-like managers (non-family) who run the business as if it is their own. These firms also show a good level of diversification and a willingness to expand into export trade. I think these views are worth giving a thought.

There is not an iota of doubt that running a family business is a wonderful experience. Your family is in it, you all come together to make the business work, and you all share the success and together face the difficulties. It has immense potential and you can hand your business down through generations and leave a legacy. But a family business — besides being vulnerable to the same pressures as other businesses — comes also with some unique challenges. In order to address them, you need to plan and follow the best practices.

I invite opinions from all of you. Share your story: What do you think is the key to success in a family-run business?