Successors often step into an ownership role expected of them. And more often than not, they’re expected to be an active owner-operator in the family business. It’s the only ownership role most families recognize and understand. As some like to say, “If it isn’t broken, why fix it?” According to Nick Di Loreto, this mindset can force future owners into a role they either don’t want or won’t succeed in. And it can cause strife between family members, leading to dissent and the dissolution of the family business.
As families grow and businesses evolve, it’s important to recognize the changing nature of ownership roles. Owners no longer have to be “active” in a family business. And they don’t have to be “operators,” either. Understanding the 5 ownership roles in a family business is key to the health of a family business and its long-term success.
What are the different types of ownership? Find the answer in “5 Kinds of Ownership Roles in a Family Business.” Be sure to read until the end. There are six steps that can help families navigate the evolving roles of ownership.
Read about understanding the 5 ownership roles in a family business here.
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