10 quick questions to assess your family business
A family business can be a precarious balancing act without the necessary supports in place. Is your family business well-equipped to meet the challenges, maintain family harmony, and achieve business success?
Ask yourself these questions to discover if your family business is out of balance.
- Do family conflicts and issues frequently derail good business practices?
- Is there a clearly stated entry and exit policy for family members?
- Does the business have a succession plan (for ownership and for management) that has been communicated to all stakeholders?
- Is there a clear process for owners to divest their stake?
- Is their a current organizational chart – including job descriptions?
- Has the next CEO been identified and announced?
- Is there a compensation policy (including bonuses) that includes family and non-family employees and is accompanied with an evaluation procedure?
- Does the business have a governance structure in place that is understood by all stakeholders?
- Do employees (family and non-family) understand their level of authority and enjoy accompanying empowerment?
- Is the business profitable and in a growth mode?
Are you completely satisfied with your answers? Do you have questions? Want to talk it over with Rick Segal, the premier family business expert?