“Growing up in a family business can have its benefits. But if the next generation of owners think their businesses are there to serve them (and not the other way around), they are sure to suffer a decline in fortune and status,” wrote Jacoline Loewen for The Globe and Mail on June 2, 2015.
Loewen continued, “Family businesses account for over 90 per cent of the world’s companies and although many are mom and pop stores, there is a growth in family businesses that are sophisticated public companies.
Sobeys Inc. has more independent board members that outnumber the family board members. Quite a few of the outside advisors are from family businesses themselves and understand the strengths of family businesses. One of those strengths is the driving, long-term vision that pushes beyond the quarterly results which can trackle public companies, and this view of the business as a long-term investment gives room for dynamic business decisions. The outside experts also understand the typical weaknesses of family businesses, such as the internal family dynamics around succession and wealth. They are human, after all. Outside experts give the good advice which may be hard to hear, but will push for the professionalism required to compete with global players which makes it worthwhile.”
Read the full article here.
Raymond Matt, CFP, CLU, TEP, CHS
Subscribe to: Post Comments (RSS2)