Family Business Goals - the MOST Important to Consider

Note: Reposted in response to the NY Times Article Making a Plan for Succession.

Consider the question "Are you a family business OR a business family"?

I was attending a seminar recently on Family Business issues and goal setting, resolutions and succession were major topics. The goals discussed were those that would be apparent to others… family member engagement, focusing on the big picture, etc.

Here is the most Important Goal to Consider

The next generation is best served by setting a more important goal that has generational time frame impacts. So the question - Shouldn't a major goal of the next generation be to determine the viability of the business for the next generation? We now have what I call structural ambiguity present in the economy and the business environment. Assumptions that were prudent in planning and forecast in the past probably are now irrelevant.

Are You Assuming Perpetual Business Viability?

The younger generation simply cannot assume business viability for another 20 years, just because the business may have been family owned for several generations past.This is most difficult to do since the Family-Business overlap is so strong and the “family” component is highly emotionally charged.

As the moderators said and as I always say, sometimes the sale of the business is the best decision for the next generation. A business in the Maturity stage of a business’s cycle or in the early stage of declination may not be the best asset for the family.

Consider Becoming a Business Family

A Family Business is construct, a “container” so to speak that provides value in many aspects to the family. However if the family thinks of themselves as a “business family” or what is called an enterprise family, it is not narrowly defining a business sector where it can invest it’s Human, Social and Economic capital.

Do you like to work together? Does your family have a great mix of skill sets? Are you great at articulating a vision and strategy? If yes… then you can apply all of that valuable family capital to new enterprises that will be born now and last for several generations into the future.

For a deeper dive into this subject, you may want to read The Route to Finding the best Family Business Adviser.

Also you can read my response to a NY Times blog post on Succession Planning.

All the best!

Dom Celentano

NJ Family Business