What defines success in a Family Business

As in Art,

beauty is in the eye of the beholder.

So too is the definition of success.

In a business family, the measuring stick or metrics of success must be determined and considered by all in the family business in order to understand underlying motivations and decision-making. Studies have shown increased satisfaction in attaining the results of the metrics will increase morale, commitment, and overall satisfaction in the business.

In the business family, goals and objectives of the business and goals and objectives of the family are often difficult to distinguish. The level of expectation and the attainment of those goals contribute to feeling of success and satisfaction and commitment by the family to the family and to the business.

The question I believe this raises, is what are the goals and objectives of your family business?

Is the goal to just pay the bills and employ everyone in the family?

Is the goal to have net profits exceed industry standards?

Is the goal to harvest the business and cash out?

Is the goal to pass the business to the next generation?

Research has shown the family’s satisfaction with their business performance is directly connected to the survival of the family business.

Have all in your family identified and connected with the goals and objectives of your family and your family’s business?

Have all in your family internalized the vision, mission, and values of your family?

How would you encourage other business families?