A family business is unique, in that it needs to keep both the needs of the family in mind with every business decision, without deterring from what’s right for the business itself. So how well is your business performing?
Anyone running a family business will attest to the fact that with every decision the interests of the family must be held in one hand, and then interests of the business in the other. When one is favoured over the other, things fall apart.
If the owners set aside the interests of the family for those of the business too often, then they will soon find that the family starts to resent the business and pull away from it – making it difficult to pass it on to a committed next generation.
On the other hand, placing the family’s needs above those of the business will lead to the quick deterioration of the company’s health. Making it unlikely that it will sustain itself much further, let alone thrive.
That’s why the Family Business Performance measurement takes 6 important business and family characteristics into account to decipher how well a business is doing to keep the balance and therefore the health of both the family and the business high.
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