In July, the Labor Department reported the unemployment rate rose to its highest level since 2021. On August 5th, Japan’s Nikkei Stock Average had its worst day since 1987. Concerns about a slowing US economy and potential recession create an uncertain environment. To navigated these volatile time, a family business director can adopt a holistic view of the family’s complete balance sheet.
Your family business is most likely your largest asset. But it’s not your only asset. As Zac L. Lange claims, a holistic view of the family’s entire financial portfolio can foster longevity and stability for a family business. Simply put: A broader perspective allows for more informed financial decisions. Take, for example, leverage decisions. When strategically employed, leverage can diversify holdings and mitigate overall risk for the family.
Check out “Heat Waves, Hurricanes, Selloffs, Oh My” and come away with two additional strategies for family business directors navigating volatile times.
Read about the three strategies for family business directors navigating volatile times here.
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