Keeping a family business in the family requires a great deal of thought and planning. One of the first important steps may be for the founder, or current
business owner, to clarify why he or she wants to keep the business in the family. If the purpose is simply to provide a livelihood for his or her heirs, the same purpose might be accomplished by selling the business, setting up a trust, and
letting the heirs receive interest payments for the rest of their lives. If the founder, or current owner of a business, wants his or her heirs to be self sufficient and have to earn a living, ensuring a livelihood for them could be accomplished by financing college educations and allowing them to follow their own interests.
business owner, to clarify why he or she wants to keep the business in the family. If the purpose is simply to provide a livelihood for his or her heirs, the same purpose might be accomplished by selling the business, setting up a trust, and
letting the heirs receive interest payments for the rest of their lives. If the founder, or current owner of a business, wants his or her heirs to be self sufficient and have to earn a living, ensuring a livelihood for them could be accomplished by financing college educations and allowing them to follow their own interests.
Completing a written mission statement can help clarify reasons for keeping a business in the family. Many people who own family businesses believe that their business provides a service that people in their community need. A family that operates a hardware store may believe that their friends and neighbors would not be able to find the products they sell at reasonable prices at a large home improvement centre, for instance. Other families strongly believe that an art or craft that is part of their family tradition, is worth preserving and sharing to enhance the quality of life in their community.
'via Blog this'
No comments:
Post a Comment