Starting a Business

Starting a Family Business

Not sure where to start when creating your family business policy? Here are the basic essentials included in most.

Promoted Opportunities

Fund Your Franchise with Guidant

Guidant Financal Learn how to invest your IRA or 401k into a franchise penalty-free. ($50k min)

If you're writing a family business policy, include:

  • A mission statement
  • A policy on how important decisions are made
  • A method for handling disputes
  • A determination describing how and when children or other family members can enter the business
  • A method for family member performance evaluations
  • A mechanism and process for selecting a successor
  • A way of ensuring adequate communication among family members (even those not in the business)
  • A policy on compensation for family members working in the business
  • A shareholders' agreement
  • The role of nonfamily senior managers
  • The rights and responsibilities of shareholders, directors and family managers

For reprints and licensing questions, click here.

View Comments (0)