Most people envision a little mom and pop store or restaurant when they think of a family business.

But nearly 35 percent of Fortune 500 companies are family-owned businesses, including Ford Motor Co., Wal-Mart and Anheuser-Busch, according to the Cox Family Enterprise Center at Kennesaw State University.

Regardless of their size, family businesses have strengths and weaknesses not present in traditional companies. And for better or worse, family businesses just have their own way of doing things, said Mark Tibbetts, president and CEO of Tibs Group in Suwanee.

Tibbett’s father, Marvin, founded the electrical services and technology solutions company in 1971. Mark now runs the company with his brother Todd, who serves as chief financial officer.

Family businesses large and small, from a bakery to a telecommunications firm, can play to their strengths, but also need to carefully avoid several complications that can arise when family and business mix.

Avoid nepotism

While it’s nice to be able to help out a friend or family member in need, jobs in a well-run family business shouldn’t be handed out as favors.

“Families that don’t succeed bring nepotism into the company,” Tibbetts said.

Giving out jobs as favors to unqualified friends and family members is not a good way to run a company, he said.

“You want to put the best people in the best slot.”

Help everyone find a niche

Not all family members can do the same job in a family business.

The best strategy for the business and the family is to let each person find which of their skills are most valuable to the business.

“You’ve got to identify each other’s skill sets,” Tibbetts said. “But you have to balance that with your existing and key employees.”

Because not every job in the business is right for a member of the family, outside employees are a good way to fill in any skill gaps, he said.

And just like any other business, family businesses should keep family employees on their toes by giving them a variety of tasks and activities.

“My dad did a very good job making sure we were challenged,” Tibbetts said.

Use your connections

All businesses rely on relationships to one degree or another, but family businesses tend to rely even more heavily on friends and the community for success.

Because a family business is already built on strong relationships, each family member can use connections within the community to help build sales and partnerships, Tibbetts said.

Be open to outside viewpoints

One of the advantages of a family owned business is having the freedom to lead your company as you see fit.

But it’s also helpful to remain open to occasional input from experts outside the company to keep your business fresh and in tune with the market.

Some family businesses have an independent advisory board with a member or several members from outside the family or even the company.

There are times when an outside opinion can be a valuable decision-making tool, Tibbetts said.

Many successful family owned companies also encourage family members to work outside the business for a few years to build up additional business experience in a different environment, Tibbetts said.

“And some decide not to come back,” he added.

Work your way up the ladder

It’s important that children or other family members who take the reigns of the business work their way up through the company, Tibbetts said.

“You have to earn the respect of employees and the customers,” he said. “But sometimes, employees resent family members working their way up the chain of command.”

To prove their worth to these employees, family members may have to put in extra time and effort.

“You have to work harder than the normal person in a family business to earn respect,” Tibbetts said. “You have to make sure everybody knows you’re not having it handed to you.”

Plan to pass on the reigns

Any family business should have plans to pass on the business to children, other family members or friends.

Be sure to research every aspect of your business’s eventual succession, either on your own or with help from a consultant.

Organizations such as the Cox Family Enterprise Center at Kennesaw State University specialize in aiding family owned businesses with the succession process.

Count on family

While a business can’t always count on employees to work overtime and weekends, family businesses frequently depend on family members to put in extra time to get things done.

Last year, when Tibs Group’s business began to struggle, Mark’s father Marvin came out of retirement to see if he could help get things back on track, Tibbetts said.

“He was retired for seven or eight years, but now he’s back in — engaged and playing some roles around here,” Tibbetts said.

Many family businesses also count on family members or friends for financial aid to get through tough times or get a little extra money for improvements.

Put the family first

Sometimes it’s easy for members of a family business to forget that they’re working in a professional environment.

It can be tempting to try to push things to go your way rather than do what’s best for the group and business.

“We have to learn to lose our egos sometimes and do what’s best for the company and not for individuals,” Tibbetts said.