Small Business: Family Business Assessment

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Family Business Assessment (Checklist)

Business issues

Yes/No

1. Have goals for sales and profits been set? --- ---

2. Do we have a business plan? --- ---

3. Do we have a strategic plan? --- ---

4. Is the business in good financial standing? --- ---

5. Do we have a compensation system? --- ---

6. Do we have a performance appraisal system? --- ---

7. Do we have a board of directors? --- ---

8. Can we attract and retain non family managers? --- ---

9. Is the business in a highly competitive industry? --- ---

10. Are we experiencing an increase in sales? --- ---

Family business issues

1. Do family members know they are welcome to join the firm? --- ---

2. Do we have policies for entry into and exit from the firm? --- ---

3. Is a system in place to train and develop the successor? --- ---

4. Do we have a succession plan? --- ---

5. Can family members in the firm effectively communicate? --- ---

6. Do we have a system to resolve conflict among family members? --- ---

7. Are women welcomed in the business? --- ---

8. Is there a minimum amount of sibling rivalry in the firm? --- ---

9. Is there a system in place for choosing a successor? --- ---

10. Does the family agree on goals for the business? --- ---

If you answered no to any item action should be outlined and implemented to address and set policies for that item.

Section II

The following items need to be discussed in the family business:

Leadership succession.
Ownership transfer.
Communication policies.
Compensation policies.
Rights and responsibilities of nonfamily employees.
Rights and responsibilities of in-laws.
Creating change.
Development of a management team.
Long-term planning for the business.
Obtaining financing.
Financial equity among children.
Resolving conflict.
Hiring and firing practices.
Sibling rivalry.
Organizational relationships.
Working with advisers.

This list should be distributed to every family member. Responses should be compared and issues of concern to family members identified. Unresolved issues should be discussed and polices established to resolve them.

Food For Thought
You cannot truly have something new without letting go of the old. A new job requires you to resign from your old one. A new house means that you must move out of your old one. A new version of your word processing software creates files that can't be opened by the old version.

The easy, comfortable way is to stay with what we know. But with the world changing so rapidly, staying put is a luxury that few can afford. Life is an exciting journey, and to execute a journey, one must travel to new places.

If you are not moving forward, you are falling behind. What new things can you learn today? How can you improve the way you do your work? How can you do things faster, with more accuracy, and at less cost? All over the world, people are asking themselves these questions, and many are discovering the answers.

To embrace the new, you must "lose sight of the shore." That means opening your mind, and losing your attachment to the old way of doing things. Don't take comfort in your routine. Instead, have confidence in your ability to adapt to, and take advantage of, new concepts and ideas.

True, meaningful commitment to anything is not something that happens just once. It happens over and over again. You will constantly be called upon to choose one action over another, and each time you do so, you will be renewing your commitment.
When you are fully committed to achieving your dream, many opportunities will come, as if by magic. And so will obstacles. The opportunities are great. And the obstacles are just as important. They will help you to become the person you need to be, to achieve your dream. You must grow. You must get out of your comfort zone. The obstacles and challenges give you a way to do that.

Learn to appreciate the obstacles for what they are -- opportunity in disguise. They will teach you, prepare you and help you to grow.

The interesting thing about fear is that it should not be feared. Fear can be a very useful and powerful tool. It gives us extra energy in new and unfamiliar situations. It sharpens our senses. It helps us to focus. It helps us to avoid legitimately dangerous situations.
The problem with fear comes when we begin to fear being afraid. Fear of fear. For example, imagine that your have "stage fright" -- the fear of speaking in front of a large audience. This is probably one of the most common fears. Now suppose you find yourself in front of a large audience, and suddenly a fear overcomes you. What is that fear? Are you afraid of the audience? No, you're afraid of your fear. Carry it a step further. Imagine that you turn down a good job offer because it might involve some public speaking. Do you fear the job? No. Do you fear the public speaking. No. You fear the fear of the fear. Wow -- fear can get very deep when we're afraid of it.

The best way to overcome fear is to do the thing you fear. And the best way to do that is to accept your fear as something positive and useful. Use the heightened energy and awareness your fear gives you to help you through the feared situation. That's what the fear is there for -- to help you cope with the thing you fear. Don't fear your fear. Use it for growth and accomplishment.