Time for a financial checkup? How often do you undertake this exercise, a mere pause and reflection from the relentless and all consuming pursuit of your family enterprise’s success. What do I mean by a financial checkup? This means to consider your assets. The first time doing this, most people would focus on their financial assets (stocks, investments, real estate, savings). More about the financial assets in another blog entry. There are two further classes of assets to consider and measure:

– human capital
– intellectual capital

Human Capital – the valuable people in your family and non-family members in your enterprise that bring energy, commitment and loyalty to their contributions

Intellectual Capital – can be found within your human capital and captures the special know-how and history and values of your enterprise. The intellectual capital is really the “secret sauce” of your enterprise’s success.

In my view, financial assets are only a measuring stick of the progress and growth of your enterprise. The true long term value in your enterprise lies in these other two asset categories. Yet, oftentimes, little attention is given to nurturing and growing these longer lived human and intellectual assets.

Think about what you are doing to tend and grow these two areas in your enterprise. With a long term view, they will sustain your enterprise through generations.

Learn, think, apply!