Family Business
Should you be fortunate enough to own a business and work in a family setting, you know very well difficult situations can sometimes arise. This is why today we will explore advice that may help you maintain a prosperous business for many future generations.
Communication within the Family Business
Our first recommendation has nothing to do with managing financials, but we think it is vital that we talk about it.
Working with family, is often working with several generations and visions. Generation conflicts, different perspectives of the working world, lack of flexibility and open-mindedness to new ideas from older generation members in the business, and many other aspects can slowdown growth.
Our first piece of advice is the most simple yet: never neglect communications!
Exchanging ideas is important, and being a family should facilitate good communication right from the beginning.
Training the People who will Take Over Your Family Business
The founders, or those presently at the head of the business, should not neglect training their successor. It is hard to delegate, especially when one is used to manage everything alone. If you wish to see your business flourish even when you've left for retirement, your successor needs to be prepared!
A Well Planned Succession
Let's talk now about the financial part, the one that interests us the most.
We talked about generation conflicts earlier, but let's not forget succession conflicts that can arise. It is unfortunately quite common to see several successors in a business experience conflicts when taking over management. It is the reason why one should prepare well in advance the succession. Your financial advisor can guide you with asset distribution, recommend investments for each one of your successors and help you manage your portfolio of investments.
Beware of Limited Capital
Finally, we recommend to beware of limited capital. As for any company, even if yours is a family business, you will need to please some shareholders, whether family or not. The more reason why personal investments should not be neglected; they could help you in a pinch should unfortunately your business has difficulties, or help you with company succession fees.
La Clinique Financière is there for you with the best advice and support, for your financial future and that of your family!