It’s time for your family business to get on the same page. Operating a business informally—without explicit rules and expectations—can sustain a family business for a single generation. But when it comes time to pass on the business to the next generation the rules are unclear.
Questions arise, like: If there are multiple heirs, who becomes the leader? How do the heirs share the risks of owning a business? Should the heirs grow the business or keep it regional?
Current owners might articulate answers to these questions and others. But if they aren’t recorded, their desires for the business can be lost to time. This is when a family constitution comes into play.
The process of creating a family constitution can be overwhelming. Knowing what to add to a constitution isn’t intuitive. Find guiding tips on the process and what’s typically included in a family constitution in “Getting on the Same Page: How a Constitution Can Benefit Your Family Enterprise.”
Read about creating a family constitution for your family business here.
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