Family business is a special kind of building ownership structure. The family business is often mistakenly understood as only companies that are inherited for a long time. In fact, it is only one type of family business.
The following businesses are recognized as family businesses:
- the owners of which plan to transfer the business by inheritance (rather than selling or liquidating)
- owned by members of the same family
- close relatives of the owner work in the company and have influence on decision-making
- between the owners and part of the staff there are actually family relationships
The family type of business, on the one hand, mitigates internal risks, simplifies control and extends the horizon of strategic planning. On the other hand, the family business is a delicate matter, which can entail both the spread of family conflicts to the working environment and the reverse effect. Therefore, it is very important to define the rules of the game in advance in order to preserve business and relationships.
Also, a frequent problem in the family business is continuity. Often, the views of the owner and successor on the issue of doing business do not coincide. And it happens that the children on the contrary have no interest in their parents' business. Such situations seem usually hopeless and the disagreement does not fade away for many years.
VINT Consult offers services in engineering of family business. This practice implies the construction of an optimal system for the distribution of roles for family members, the creation of a plan for the transfer of business by inheritance, the introduction of the younger generation in the course of the case, the order of entry and exit from the family business, the resolution of acute situations. External competent opinion is absolutely necessary here!