10 Best Practices of Successful Family and Private Businesses

The Goering Center for Family and Private Business has been serving the tri-state region since 1989. We continuously monitor the research and trends of non-public firms and have compiled the following 10 Best Practices of successful family and private businesses.

  1. Family Business/Business Charter: Articulate a clear family business/business philosophy, resulting in a charter that outlines policies concerning employment, ownership, compensation, management, conflict resolution, and personal and corporate responsibility.
  2. Dynamic Business Strategy: Develop, regularly update, and communicate a business strategic plan, with continuous measurement of the plan results.
  3. Performance Management System: Develop and execute an employee performance management system including accurate, up-to-date job descriptions, agreed upon goals, and timely, truthful feedback and evaluations.
  4. Leadership Development: Implement leadership development plans for key positions and possible successors.
  5. Outside Boards: Establish either a Board of Advisors or Board of Directors including non-family members.
  6. Contingency Planning: Create contingency and estate plans that address the organization's response in the event of disability, death or voluntary resignation of owners and key officers.
  7. Owner's Retirement Plans: Create retirement plans of owners that address lifetime security of owners, including a continual challenge for retired owners.
  8. Business Growth: Experience continuous financial success over time in terms of sales and profit growth.
  9. Family Council/Business Council: Create an active and functioning Family Council or Business Council that serves the purpose of communicating company and family issues.
  10. Giving Back: Embrace and encourage company and individual community service.

Core members: Review the Member Alignment Profile (MAP).

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