When Should a Family Business Set up a Family Council?

A family business should consider setting up a family council when there are multiple family members involved in the business, and when the family wants to address issues related to the family's involvement in the business. Here are some factors to consider:

1. Family dynamics: If there are multiple family members involved in the business, a family council can help manage relationships and resolve conflicts.

2. Communication: A family council can help ensure that family members are informed and involved in the business's decisions and activities.

3. Succession planning: A family council can help with succession planning and ensure that the family's values and goals are aligned with the business's vision.

4. Governance: A family council can provide a forum for discussing and deciding on family governance issues, such as how the family will be involved in the business and how decisions will be made.

5. Education and development: A family council can provide opportunities for family members to learn about the business, its history, and its values.

In summary, a family business should consider setting up a family council when there are multiple family members involved in the business, and the family wants to address issues related to the family's involvement in the business. The council can help manage relationships and conflicts, ensure communication and involvement, assist with succession planning, govern family involvement in the business, and provide education and development opportunities.

This blog is part of a six-part series. Check out the other blogs here:

1. When Should a Family Business Set Up a Board of Directors?

2. When Should a Family Business Set up a Family Council?

3. How Do You Establish a Family Council?

4. What Is a Sample Agenda for a Family Council Meeting?

5. How to Benchmark Pay Rates in a Family Business

6. What is a Succession Planning Roadmap for a Small Family Business?

I hope this blog gave you some insights on setting up a family council for your family business. If you need guidance along the path, give me a call! I'd love to help coach you through a plan that works for you. Book a call.