With the recent announcement of several large businesses filing for Chapter 11, others filing for Chapter 7 and the seeming rebound of several market indicators, I would suggest it is as critical a time as ever for families in business to pause and consider what direction they want their family and business to go.
As is often the case, the tyranny of the urgency takes precedence to strive for income that exceeds expenses. It takes time and commitment for a business family to learn, to discuss, to plan, and implement the building of a legacy.
Success depends on how effectively the family, the managers, and the leaders understand the marketplace. There are several key factors that the family needs to understand to compete in the marketplace.
- What are the factors of the market: the competition, the economics, the technology, substitution products or services?
- What are the capabilities of our business and family: knowledge, skills, abilities, attitudes, and commitment?
- What can we as a family do, adapt, or redesign of our product or services: take the learning ability of our team to turn expenses into value generation?
- What do we, as a family, believe the future will be: based on critical metrics, leading indicators, and our family’s objectives for the legacy of our family and business?
What do we, as a family in business, need to learn and do well to create value?
What do we, as a family in business, need to learn to build our legacy?
Let me know how you and your family address these critical factors.
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