You have worked long and hard to build your family enterprise. You know many aspects of the enterprise innately because of your familiarity having built‎ this enterprise. Do you think your family understands and shares this depth of financial knowledge about the business? One day, it may be theirs and you may not be around. You should consider what steps to take to educate them about the business and more importantly the key financial metrics about the enterprise.

Understanding can lead to a greater sense of ownership and responsibility towards the enterprise.

How can you do this?
– start – begin the conversation
– get help – usually from the internal or external accountant. Your accountant will often have the best insight into the business and its financial metrics.
– what to discuss? Begin by going over the assets and income in the business. As the family’s knowledge gets deeper, then you may have more strategic discussions.
– how often? ‎Regularity of discussions should create a natural curiosity and greater interest in the business
– milestones? – you know you have succeeded in improving financial literacy of your family when they are asking for meetings and updates.

Start the process. This can be a tricky and complex discussion. Starting can be the best first step.

Learn, think, apply!