Making a Business Plan for Your Family Business.
A strategy centered on increasing joint family wealth, frequently through a diversified portfolio of jointly-held assets, is necessary to ensure the durability and sustainability of a family-owned business. However, a broad diversification strategy is challenging to implement, therefore families without the necessary structure and procedures should not pursue it. Successful multigenerational families must first establish a long-term vision for the company’s boundaries. Successful families understand the need to commit significant resources to finding, evaluating, and prioritizing opportunities to expand enterprise borders after the decision to diversify has been made. Finally, prosperous families must be prepared to adjust their portfolios by selling off underperforming or unnecessary assets.