Family businesses are unique, merging personal bonds with professional goals to forge a dynamic mix of strength and complexity. This interesting, unique blend can lead to greater success, but it also presents distinct challenges that require careful navigation. As a wealth steward in a family enterprise, you might wonder: Why do some family businesses flourish through generations while others falter? The secret lies in strategic planning that encompasses three vital pillars: family, ownership, and business. Let’s delve into how these elements intertwine to build a lasting legacy.
The Family Strategy: Cultivating a Shared Vision
At the heart of every successful family enterprise is a strong family foundation. This starts with defining your family’s values and vision. What principles guide your decisions? What does it mean to be part of your family? By articulating these core beliefs, you create a blueprint that guides your business through generations.
Establishing governance and traditions is equally important. How will you make decisions as a family? What customs will you uphold to strengthen your bonds? These structures provide stability and continuity, especially during times of transition.
Nurturing relationships and managing conflicts is perhaps the most delicate aspect of family strategy. Open communication and a clear code of conduct can help navigate disagreements constructively, ensuring that family ties remain strong even in the face of business challenges.
The Ownership Strategy: Balancing Growth and Legacy
As enterprise owners, you’re tasked with setting the direction for your enterprise’s future. This involves a clear portfolio and risk management goals. Are you in growth mode or harvest mode? What are your risk tolerance levels? By answering these questions, you align your business activities with your family’s long-term objectives.
Implementing effective governance structures is crucial for maintaining accountability and aligning interests across your family enterprise system. A well-functioning board of directors can provide valuable oversight and guidance, ensuring that management decisions serve the best interests of both the family and the business.
Aligning family involvement with business needs is a delicate balance. A clear family involvement policy helps manage expectations and creates a framework for family members to contribute meaningfully to the business while respecting meritocratic principles.
The Business Strategy: Driving Sustainable Performance
Your business strategy is where your family vision meets market realities. Developing a competitive advantage and a long-term vision is essential. What unique value does your business offer? How will you adapt to changing market conditions while staying true to your family values?
Building a solid talent management and succession strategy ensures your business has the leadership it needs to thrive in the future. This is more than just preparing for the next chief executive – it involves nurturing talent at all levels of the organization and creating a culture where people want to work.
Leveraging “familiness” as a unique resource can set your business apart. Your family’s history, reputation, and values can be powerful assets. Identify these unique resources and invest in them to create a sustainable competitive advantage.
Your family enterprise is more than a business – it’s a legacy. Aligning your family, ownership, and business strategies lays the groundwork for long-term and sustainable success.
ABOUT THE AUTHOR
As the Senior Wealth Advisor at Beacon Family Office at Assante, Cory Gagnon has supported successful family enterprises to preserve, protect and transition their wealth since 2011.
Cory’s personal objective as a Wealth Advisor is simple. He is committed to supporting families to take control of the areas of their lives that truly matter to them. This commitment revolves around using specific tools and strategies that enable families to take action with confidence which will support them through life’s critical transitions.
ABOUT THE AUTHOR
As the Senior Wealth Advisor at Beacon Family Office at Assante, Cory Gagnon has supported successful family enterprises to preserve, protect and transition their wealth since 2011.
Cory’s personal objective as a Wealth Advisor is simple. He is committed to supporting families to take control of the areas of their lives that truly matter to them. This commitment revolves around using specific tools and strategies that enable families to take action with confidence which will support them through life’s critical transitions.
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Beacon Family Office at
Assante Financial Management Ltd.
Suite 519, 10333 Southport Road S.W.,
Calgary, AB T2W 3X6
