Category Archives: Finance

Family Business: What Could Go Wrong?

The benefits to a family business of having a board of directors are indisputable. A well-chosen board provides you with honest, objective opinions, uncolored by the kinds of relational issues that can muddy the waters of governance in an all-family enterprise. Having a board strengthens accountability, self-discipline, and strategic thinking because your board can ask the challenging questions that family members might not be willing to advance.

A high-functioning board grows your enterprise’s value, too. According to research from Lodestone Global1, 96% of companies who implemented boards of directors reported increased revenues, seeing an average revenue growth of 55%.

When might you consider forming a board?

When the person responsible for business operations isn’t the sole owner
When other members of your family share ownership but not owners’ responsibilities
When ownership is spread across a large group of shareholders in increasingly smaller percentages
When the business is transitioning to the second generation and beyond and ownership is seeking greater corporate governance
What can go wrong when you don’t have a board of directors, or the one you have isn’t effective? The kinds of internecine squabbles that can affect any family are amplified when the family ties include the family business; personality conflicts, concerns about nepotism, and abuse of power are less likely when a board has oversight.

New Spanish-Language Option Available on our Website

We are pleased to announce the new Spanish-language version of our website. With this new feature, we can offer Spanish-speaking family businesses around the world access to our extensive resource library and clear communication about our services. The Spanish-language content is easily accessible by clicking on Español at the bottom corner of our home page at or by clicking here.

Nos complace anunciar la nueva versión en español de nuestro sitio web. Con esta nueva función, podemos ofrecer a las empresas familiares de habla hispana de todo el mundo acceso a nuestra amplia biblioteca de recursos y una comunicación clara sobre nuestros servicios. El contenido en español es fácilmente accesible haciendo clic en Español en la esquina inferior de nuestra página de inicio en o haciendo clic aquí.