End Conflict with a Family Business Constitution
- Preserve your original mission and vision.
- Avoid family or business partner conflict.
- Delegate authority to the most qualified.
You can create an original intent statement to include in your family business constitution that ensures your vision is kept alive. Family conflict is a primary factor in small business failure. This is especially true when the original or primary owner of the business is no longer in charge. There is often a void of leadership left behind. That void encourages well meaning but often unqualified mid level managers to become adversaries. The original business plan is often lost. Designating and delegating authority to your leadership team is the best way to avoid such conflict after you are gone. This is also an excellent gift to give your family in an effort to preserve the family unit. A family business constitutional document need not be a massive legal agreement. You can create such a document in less than two hours on a legal pad with a pen. It is best to create such an important document in the privacy of your home where you can get complete clarity. Include a trusted partner, like a spouse, to review the document. Consider these four elements to convey your vision for succession:
It is common for second generation businesses to stray from the original strategy and get lost once…Click To Tweet
- Your mission and vision statement.
- Chain of command.
- Dispute resolution procedures.
- Charity wishes and guiding principles of your faith.