Business & Family
When to mix them and when to keep them separate
If you own or run a business, you know how important it is to have a strong leadership team.
Making smart decisions and keeping the business running smoothly every day is crucial for staying profitable and ahead of the competition.
But what happens when you decide it’s time to step out of the business?
In a perfect world, your siblings, kids, or grandkids would all be great at business and could take over when you're done.
But in reality, your family members have different skills and interests.
Some might be ready and willing to take charge, while others might not be interested or skilled enough.
For some families, the business is the main source of money, and its success is crucial for everyone's financial well-being.
Others might have big investments managed by a family office that matters more.
Some families have lots of people who want to run the business, while others have just one person learning to take over someday.
If your family is more business-focused, you could set up a system to reward family members who work in the business and make money for everyone.
For example, you can decide:
Which part of the company they work in
Set goals they can achieve
Give them bonuses when they meet those goals
Family members who don't work in the business might get money from a family trust and a share of the business's growth.
But say your family values being fair and sticking together.
You might decide that each family member gets an equal share of the money the business makes or a piece of the ownership of the business.
In these families, it doesn't matter if someone is great at business or not; they're all treated the same way.
During family planning sessions, you might find that your family has different ideas about what's most important.
If you can't agree, you might have to think about bigger changes, like selling the business.
But before you do that, it's a good idea to talk to an expert who can help find a fair solution that works for your family and your business.
Thanks for reading!
Jake Claver, QFOP
P.S.
Check out my website with links to everything I’m working on at JakeClaver.com