If you have family and a business, you are a family owned business. Whether or not other family members are directly involved in the business and whether are not you are in business with a non-family member. The point is, what happens in your business has a direct impact on your family. What happens in your family has a direct impact on your business. For family owned businesses and for the family – the stakes are high.
As a family business owner you have a high level of commitment to the business, its ethics, the staff and the life you can give you and your family. The danger for family owned businesses is that disastrous unintended consequences will happen if the ‘what ifs’ have not been dealt with – so what are the what ifs?
The what ifs…
What if a shareholder divorces – family member or not?
What if a wife/partner/husband/brother/sister/in-law dies unexpectedly?
What if your business is not protected for your children?
What if you fall out with a family member who works in the business?
What if you do not have a retirement plan in place?
What if you want to sell the business?
How and when will you pass on your business?
What if a shareholder wants to sell his shares to an outside 3rd party?
What if you die prematurely, what happens to the business?
What if employees resent family being involved in the business?
What if you are breeding a minefield for conflict?
What if you and your husband/wife/business partner do not have the same aspirations for the business?
What if you intend to leave the business to your children?
What if your son/daughter/wife/husband works in the business but is not right for the role?
What if your children are not suited to taking over the business?
Secure your Business, Secure your Family
Every family owned business needs the right framework in place to protect both the family and the business and enable the business to grow.
The trouble is that there are two forces at work here:
- Family. An emotive concept. It’s about caring, looking after your family
- Business. Should not be an emotive concept. It’s about profit. The business should work for the benefit of the business.
When family and business mix the unintended outcome will be that at some point family emotion has an adverse impact on the business – or vice versa
Secure the Business
You need to make sure that the necessary processes are in place to deal with the ‘what ifs’. It is essential to have clarity and the proper protections in place for you, your family and your business. A process that falls into place when the ‘what ifs’ happen.
No Obligation Call
If you would like to have a no obligation chat as to how to protect both your business and your family then I am always happy to talk, without obligation:
Tel: 01225 287516 or e mail: jane.latham(Replace this parenthesis with the @ sign)lcls.co.uk