image RBC.com | Search | Site Map | Legal Terms  
image
Other RBC Sites:
image Banking Investments Insurance
Sign-in
RBC Royal Bank
 
banner - caribbean business general

Resource Centre

 

Why Expand?

Family relationships are intense and deeply felt. They can tear the company apart or create the glue that makes it a joy to go to work.

Like any small business, a family business must plan, structure and develop strategies for its growth. But internal relationships complicate the dynamics.

Here are 5 basic points to consider in building a family business that you can pass on to future generations:

  • Keep everyone informed from an early age onward, whether they're active in the business or not.
    • Develop an early pride in the family business - have children write histories, do odd jobs, participate in discussions about current business issues.
    • Talk money - don't make it a taboo. Make children understand the value of dollars spent and earned.
  • Allow grown children to take on exclusive territories when they are ready.
    • Give them a piece of business to run by themselves if possible.
    • Encourage them to work elsewhere if they feel they need their own space - they will return when they're ready.
  • Consider how to deal fairly with family members who will not participate in the business.
    • The business may not support all your children's families, or they may not be interested.
    • Don't let jealousies tear the family apart.
    • Consult family business experts for possible estate strategies.
  • Prepare for your premature departure as leader.
    • Protect your legacy from the loss of its only leader.
    • Start executing a succession plan in your mid-fifties to early sixties.
    • Identify your successor. Don't make it a mystery. Who has the fire in their belly to run a vibrant business?
    • Hand over authority slowly and watch how it is handled. Enlist trusted outsiders as mentors or trainers.
  • Hold regular family business meetings that include everyone, even non-active participants.
    • Everyone has an interest - only their roles are different.