Money and power in your business – my weekly blog

In your family business, the two objectives of money and power can be conflicting objectives, especially as a family business moves into more owners in the second and third generations.   Everyone is different and can be motivated by different things.  In a family business, what defines money and power?

Money – ownership

Power – voting control, leadership and ownership

A family business leader has to understand that both of these facets often had rested in one person.  In a succession plan to a following generation, the objective is to separate these two components and then try to divide these up appropriately to the next generation, according to the family’s wishes.  This can be a difficult task because of the issue, “Fair does not mean equal”. Often a fair division is done after a conversation(s) have been undertaken between the current and the following generation(s). These conversations can be tricky and difficult and certainly necessary.

We will discuss later the concept of “fair does not mean equal” in other blog posts.

Learn, think, apply!