Family businesses need rules that define expectations. Without them, the business can run into trouble – for the individuals as well as the business. As families grow and family business issues become more complicated, a written family constitution becomes one of the most important gifts that founders can give to successive generations. One of my clients calls it “the family deal”.
Family conflicts are as predictable as markets going up or down. It’s not uncommon for the business to be held hostage to family conflicts. Differences are simply part of the territory of being in business. A Family Constitution articulates the ground rules and more clearly defines family relationships and their interface with the business.
The future harmony of your family and the continuity of your business may well depend on having the necessary discussions that lead to preparing a family constitution.
Be sure to look for my next post about common conflicts that a family constitution can address.
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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.