Top 10 things family businesses need to plan for.
No two family businesses are the same. Family businesses have different structures, business models, business plans and strategies. Family businesses have their own mix of dynamics and business related challenges. Business is dynamic and things change in a family business over time. This usually depends on the maturity of the family and the business. In this article, we look at the top 10 things family businesses need to plan for. While family business are different, some similarities exist. There are predictable future events which family businesses need to plan and prepare for.
- Some family members may want to exit the business and sell their shares in the business. What happens in this case? Should they sell the shares to another family member or are they open to selling the shares to outsiders?
- Similar to the above, what happens when a family member finds what appears to be a lucrative job?
- What happens when a family member passes on? Who gets the shares?
- What happens in the event of divorce?
- What happens in the unfortunate event of the death of a family shareholder? How does this impact the shareholding structure?
- What happens when family members or siblings disagree on the expected remuneration and benefits afforded to them by the family business?
- What happens when the family members disagree on a business strategy?
- What happens when the family members disagree on the business model?
- What happens when the family members disagree on the capital structure?
- What happens when a family member disagrees on how to finance the business?