Don’t Let Family Feuds Disrupt Your Business Legacy

Family disharmony = Business disharmony

When it comes to succession planning, family dynamics are key. Some family friction is to be expected, with most squabbles remaining within the walls of the home. But when disharmony turns into dysfunction, a family disagreement can become a disruptive force on the business. To make matters worse, if conflicts arise within the business, the discord is often carried back to the kitchen table. Noone wants to feel dissed!

The detrimental effects of family problems are typically felt at all levels of the business operation, from the completion of basic tasks to hiring and retaining quality employees. Feuding family members may unintentionally sabotage the legacy and reputation of a business. The good news is there are experts who can help.

Working with an experienced and trusted advisor can often minimize the risk. Advisors like American Bank will work with the family to proactively create a succession plan that includes guidelines for managing family disputes and facilitating smooth transitions.
 

The Importance of a Family-Business Strategic Plan

Nearly all businesses engage in a strategic planning process to ensure their mission and business goals are well defined and ultimately achieved. A family-owned business is no different. But when it comes to a family business, it’s essential to involve all family members in creating a distinct strategic plan for the family. The typical family plan will include a family mission, goals, values, responsibilities, and roles for each member of the family. By working through this planning process, all family members will better understand the part they play in building a profitable business.

A skilled wealth advisor can assist in developing a comprehensive strategic plan that outlines clear roles, responsibilities, and goals for both family members and the business.
 

Family is Family, and Business is Business

For a family business to operate at a high level, family members need to establish specific and strict guidelines for working together. A solid plan will include a timeline and milestones for reaching the family’s priority goals. It is important to provide family members with a path to success that makes each of them feel like an important part of the business.

A wealth expert can not only help to educate family members, but also monitor adherence to an established succession plan, conduct regular reviews of the business’s financial health, and structure buy-out agreements in case they’re needed.

By working with an American Bank wealth advisor, you and your family can lean on their experience and expertise. At American Bank, we routinely help business owners navigate the complexities of succession planning, ensuring that both family harmony and business success are maintained.