Family Business is about relationships
Family businesses are much more complex entities than their non-family counterparts. While the business system is based on contractual relationships, with its outward-looking, focus on targets and results; the family system is often emotion-based and inward-looking. Business systems seek to make the most of change; family systems seek to minimise it.
BDO has worked extensively to help families understand and manage the systems of governance that will help predict, prepare for and mitigate the risks of operating a family business.
Governance structures in family business
By establishing a governance structure, the boundary between family and business is clarified. It helps the family develop a cohesive approach to the business, which can combat any tensions. This helps manage expectations by giving everyone a better understanding of their roles and responsibilities.
Learn more about Structuring for Success through Family Charters.