Starting a Family Business

Not sure where to start when creating your family business policy? Here are the basic essentials included in most.
1 min read
Opinions expressed by Entrepreneur contributors are their own.

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

More from Entrepreneur

Kathleen, Founder and CEO of Grayce & Co, a media and marketing consultancy, can help you develop a brand strategy, build marketing campaigns and learn how to balance work and life.
Book Your Session

For a limited time only, get this bundle of Entrepreneur PressĀ® titles for less than $30 (60% OFF) on our bookstore when you use "LEAP" at checkout.
Buy Now

Are paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.