The best run family businesses have a set of ground rules that define expectations for how family members will function in the business. This may be an agreement on how decisions will be made or terms for employment of family members. One family calls it “The Family Deal.” Every family needs something like the “Family Deal.”
Family businesses need rules that define expectations. Without them, the business can run into trouble – for the individuals as well as the business. One successful family I know requires every family member to put 50% of their after-tax income into a “Rainy Day Fund.” Now that the “rainy days” are here, that fund is keeping the business solvent during hard times. Their sales are off about 40% due to current financial crisis. If that had not established that rule, their situation would be very grim.
Does Your Family Business Need Help?
Family Business Matters has extensive experience assisting family businesses. With many decades of experience, we understand the wide variety of challenges that families face as they work together to build, grow and sustain a thriving family business generation after generation. Through conferences, continuing education programs, family business retreats, speaking engagements and private family business consulting services, Family Business Matters has assisted more than 450 family-owned businesses around the world chart their way through family business issues of all shapes and sizes.
For more information on how Family Business Matters can help your family business survive and thrive, please contact us today at (970) 948-5077.