Family Business Strategy
Every family business needs a well-defined strategy. A business strategy, or business plan, involves developing a formal approach to how the business will function in the present as well as in the future. It’s no simple task to create a business strategy for any corporation, but developing a plan for a family-owned business can be especially complex because it involves a unique set of challenges.
Some of the most complex issues involved with creating a family business strategy include:
- Difficulties in separating family issues from business issues when creating a strategic plan
- Willingness of all family members to embrace and follow guidelines set forth in the family business plan
- Agreement between family members on the specific goals of the business
- An understanding amongst all family members that the business strategy must be reviewed periodically, and that changes in business objectives may be necessary to keep up with modern times
Strategic planning is essential if a family business is to survive for many generations. A family business that is grounded on a logical family business strategy has the best chance for success.
Not only do you need a vision for the future of your family business, but you also need a plan for determining how the business will get there. A strategic plan is not just a document created and then placed in a file cabinet and forgotten. A family business strategy 1) identifies important issues, 2) sets goals, 3) develops an action plan, and 4) implements an agreed-upon strategy.
What is Included in a Family Business Strategy Plan?
A strategic plan for a family business usually requires a well-thought-out document that specifies the process to which the business will adhere in order to reach ultimate success. This includes:
- Goals for obtaining new customers
- Strategies for retaining existing customers
- Tactics related to customer service
- Methods for increasing revenue each year
- Dedication to making changes in the business as the market demands
- Define processes for reviewing the effectiveness of current business tactics and guidelines for determining if procedures should be altered
Can Your Family Answer the Question: “What is our family business strategy?“
Not only do you need a vision for the future of your family business, but you also need a plan for determining how the business will get there. A strategic plan is not just a document created and then placed in a file cabinet and forgotten. A family business strategy 1) identifies important issues, 2) sets goals, 3) develops an action plan, and 4) implements an agreed-upon strategy.
Successful family businesses have leaders that encourage and promote the business strategy on a daily basis — and also understand when adjustments are needed. Developing a business strategy is complex and challenging, but it is essential for the continued success of any family business.
Does Your Family Business Need Help?
Family Business Matters has extensive experience assisting family businesses in the development of a Family Business Strategy. With many decades of experience, we understand the wide variety of challenges that families face as they work together to build, grow and sustain a thriving family business generation after generation. Through conferences, continuing education programs, family business retreats, speaking engagements and private family business consulting services, Family Business Matters has assisted more than 450 family-owned businesses around the world chart their way through family business issues of all shapes and sizes.
Contact Us
For more information on how Family Business Matters can help your family business survive and thrive, please contact us today at (970) 948-5077.
