10 questions families need to answer before
starting a business
to go into business with Aunt Kate? Is there a spot in the company
for that ne'er-do-well brother of yours? Just how fit is your family
to run a business together?
Here are 10 questions that family business experts
say you should answer to determine if you and your clan can run
a lean and mean family machine.
1. Have you held
a formal family business meeting, drafted a mission statement,
set a business strategy and established processes for entry, exit,
hiring and firing?
you determined how business decisions will be made, and by whom?
management and reporting relationships been clearly defined?
4. Do individual
family members communicate openly and honestly about the business?
you drafted clear job descriptions?
6. Is job
compensation fair and equitable?
family members willing and able to shoulder the responsibilities
of their job?
you developed a formal process to resolve conflicts?
formal business meetings be held on a regular basis to resolve
there a contingency plan to seek outside help to facilitate better
Jay MacDonald is a contributing editor
based in Florida.
-- Posted: June 29, 2001