“Why do you actually own this business together?” If you ask your family business that question, chances are someone answers with “to preserve our parents’ legacy” or “it makes financial sense to keep the assets together.” Those answers sound reasonable in the moment, but ultimately, don’t reach far enough.
Advisors call those answers surface purpose. A surface purpose answer doesn’t have enough meat to withstand family disagreements.
And the family bound by only a surface purpose? It’s likely going to crash in the near future.
For this reason, families must identify a real reason—a purpose—that explains why they own the business together.
If your family has never written down a purpose, read here for the full case study and a way to test your purpose through three angles.
Become a Member for Your Expertly Curated Advice
Joining the Family Wealth Library means access to the information the legacy builders need to navigate family dynamics and protect our wealth. We can keep what is ours by managing familial challenges and building trust and transparency.