Building a Family Business That Works

Agendas. Rivalries. Poor communications. ConfusionNo clarityAssumptions. Competing values. There are a lot of factors that can get in the way of successfully growing a family business, and I did not even touch on the 5Ds! 

 

Building a family business is toughIt’s widely known that only 33% make it to the second generation, 12% to the third, and a mere 3% to the fourth. While the statics demonstrate it’s hard to move a family business to the next generationlet’s also clearly state that it is also worth the effortAccording to several family business institutes, family-owned companies account for 78% of new jobs. Family business is the engine of our economy. Then there is the legacy that the business can create for a family for generations to come. 

 

So what can you do to improve the odds?   

 

We have found the best functioning family businesses – those with profitable growth, succession protocol, and cultural harmony – get these three pillars of success right: 

 

1. Clarity on business goals and aligning the entire organization around those goals 

2. A path to personal financial certainty for the owner(s) aligned with the business goals 

3. A plan to move from success to significance for the owner on their terms and timing.  

 

How does a family business get these foundational pillars in place?  

 

They need a family business operating system, one that gives family business ownership a roadmap to keep the family business on the rails and heading in the right direction. It also helps owners prepare for the inevitable leadership transition that will come, because 100% of business owners will exit the business. This proactive approach ensures all the necessary financial, legal, governance and personal pieces are in place, so the transition happens as the owner(s) intended and on their timeline. 

 

Our ValuePoints™ program can be that driver to: 

•  Maximize business value and transition options 

•  Ensure owner financial certainty and unlock the wealth in the business 

•  Help the owner discover his/her next chapter, both inside and outside the business 

 

If you are interested in bringing more clarity, confidence, direction, and harmony to your family business, then learn more about ValuePoints, the family business operating system we created for our clients.   

When a company gets it value points aligned, they will see growth, profit, cash, harmony, and freedom follow.