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Why Do I Work With Family Businesses? Family businesses aren’t only about profits; they are about a shared purpose, people, and impact that transcend generations. Over 70% of businesses in the world are family-owned, yet only a small fraction make it beyond the second generation. This statistic was simultaneously shocking and humbling for me. I began to think about what helps a family business thrive across generations. The pursuit of this answer has guided my journey as a governance advisor. Entry into the world of family businesses My background and entry into the family business are rather eventful. After completing my MBA, I married into a third-generation family business. Naturally keen to understand the family business and its workings, I was in for a surprise. My entry coincided with a period of transition. What I witnessed were typical family business challenges; as is often the case, business issues would unwittingly slip into family issues. Both the family and I were unprepared to deal with these, resulting in stress and uncertainty. The Turning Point: Governance Education Luckily for us, we enrolled in a family business course. The sessions were eye opening for us. We realized that what we were facing was not isolated to our family, rather it was something all families faced. While successful families in business excel at doing business, they often struggle with family related issues such as engagement of the next gen in the business, managing relationships, etc. Governance education was a game changer for us as a family, making us realize families need governance education more than they need business education. What is Governance Education? Governance education is the process of teaching and implementing the frameworks, policies, and structures needed to effectively manage and govern a family business. It goes beyond traditional corporate governance and focuses on the complex intersection of family relationships, business, and ownership. The key features of governance education include learning how to: Define roles and responsibilities to help establish clear boundaries between family and business. This prevents confusion and conflicts over decision-making authority. Craft a family constitution that outlines how the family intends to work in the present and in the future. Create and manage communication forums such as a family council or a board of directors, to ensure that both business and family are heard. Governance education is a proactive tool that helps create a system for dealing with the challenges of working in and belonging to a family business. Legacy, Not Just Advisory The future of family businesses matters to me because of the impact they have on the economy in terms of GDP, jobs, taxes and sustaining communities. The economic impact of a failing family business is not just the loss of the business itself, but the ripple effects it creates. Although the challenges family businesses face are unique, they are not entirely unsolvable. Families in business can learn to navigate these with awareness, preparation and courage. Governance education is the foundation for ensuring families realize that the intersection of family, management and ownership do result in dilemmas and paradoxes. My mission as an advisor is to champion governance for family businesses. To facilitate building frameworks for harmony and sustainability by helping families turn conversations into actionable plans. My experience founding Pakistan’s only next gen education program at the IBA, Karachi further strengthened my belief in the power of governance education Stories of next gen transforming the family business keep me inspired to continue championing governance education. I work with families in businesses because I believe stronger families lead to stronger businesses and ultimately stronger communities. For me, the work I do is not just advisory, It is legacy building. Link: https://www.familybiz.solutions/family-business-engagement-program/

Why Governance Education Matters For Family Business? Family businesses evolve with a blend of family dynamics, business operations, and ownership, leading to blurred lines. This may result in unique challenges, paradoxes, and dilemmas. In the absence of governance, these issues often escalate into conflicts. Unaddressed conflict may cause both the family and the business to suffer to the point of disintegration. Disintegration may be avoided by the adoption of early governance education and structures. What is governance education? Governance education revolves around understanding: Principles of fairness, accountability and transparency. Family governance structures such as the Board of Directors, family councils, constitutions, employment policies, and other key policies. Decision-making processes, conflict resolution mechanisms, and ethical standards. Clarifying the expectations of family members regarding roles and responsibilities. How does governance education help? Governance education helps the family: Appreciate the nuances of the family business. Build clarity around roles and expectations resulting in reduced conflict. Better prepares the family for responsible stewardship by encouraging merit-based participation and accountability. Improve decision-making by learning to separate business needs and family needs. Holistically, governance education empowers the family with the knowledge and skills necessary to handle the many challenges that come with being part of a family business. How do families receive governance education? Families can receive governance education through both formal and informal approaches, depending on a family’s needs, stage of business, and generational composition. Formal approaches are structured and facilitated by external experts such as advisory firms, university programs, and networking organizations. Informal approaches may include creating a culture of learning by sharing family business best practices and networking with well-governed families. When is the best time for governance education? It is never too early to start educating the family on governance. The cost of neglect is often paid in fractured relationships and poor business performance. For family businesses, now is the time to create a governance learning culture. Not sure where to begin? Start the conversation at [email protected] or consider enrolling in our upcoming Family Biz Next Gen Engagement Program to empower your family with the necessary knowledge and skills for a sustainable business.

Induction Of Next Generation Into The Family Managed Business Family business owners envision the next gen joining the family business and taking it to the next level, yet transforming this vision into reality presents significant challenges. Evolving sociocultural landscape necessitates adjustments to traditional family induction methods, particularly as entrepreneurship gains prominence and accessibility due to factors like venture capital and digital innovation. Additionally, returning foreign-qualified children face hurdles in adapting to both educational gaps and differences in business practices between home and host countries.   Acknowledging these changing dynamics, founders must prioritize early engagement of next gen with family business and work on creating quality relationships. Close relationships and communication help parents appreciate their child’s natural inclination, personality traits and strengths. Parents can work on using these insights to shape children for future roles.   Introducing children to business at a young age stimulates observational learning, which is an excellent method for transferring the intricacies of business without the need for verbalization.   Children grow up idealizing their father: however, they also aspire to prove themselves independent of their father. While the next generation craves freedom to grow and carve their own path they also want to be nurtured. This duality is challenging for both the father and next gen. Often the combined role of the father and founder adds complexity to this dynamic.   Next generation should realize their role is not that of consultants or advisors. During the initial days, they must resist the urge to advise their fathers on areas of improvement and instead, focus on developing a holistic understanding of the business. They may share their input as they gradually gain influence within the business.   The first step to induction requires the next gen to join the business with an open mind. Humility, curiosity and a willingness to learn are essential qualities seniors expect and value from the next generation. Seniors bear the responsibility of sharing the business’s evolution, encompassing its challenges, sacrifices, and struggles, with the next generation.   Next gen watching from the sidelines, often assume they understand how the business works. However, the uniqueness of the business model can only be appreciated once one is actively involved in the business. Next gen often expects seniors to share the ‘secret sauce”, which refers to the competitive advantage or tacit knowledge known only to the business owners. The next gen can learn best by keenly observing and asking the right questions.  Here, they should not expect immediate answers but rather reframe questions if not answered on the first go.   Next gen is advised to join the business with the mindset to unlearn and relearn. While academic knowledge is valuable, it may not always be applied directly to the family business situation. One must be willing to adapt classroom concepts to real life situations. However, this unlearning process can be unsettling for the next gen. In such situations, a trusted non-family employee can mentor the inductee by helping them learn the ropes without fear of judgment or failure.    In a family business one must be prepared to learn from all stakeholders and not just the owners. Employees, suppliers and buyers, all are avenues for getting an insight into the business.   Family businesses face challenges inducting and developing the next gen. If the induction process is smooth it leads to harmony whereas if it is rough it may lead to conflicts. For the growth of the family business, it is imperative that all generations of the family share common values, culture and vision.

Rethinking On-Boarding Into The Family Business Founders, eager for their children to join the family business, often overlook a critical truth: not every child is suited for, nor should they automatically join the family business. The family business should never be a guaranteed career path or a default option. The idea that children have a built-in “fallback option” or an automatic “seat at the table” simply by inheritance can be detrimental to the future of the business and family. The narratives of parents shape children’s work ethic and children may inadvertently develop a sense of entitlement, removing the incentive for them to carve their own path or earn their place. The dangers of entitlement are far-reaching. They spill over into the entire business, causing deep resentment not only among non-family members but also among other family members. For example, practices like primogeniture, where the eldest child assumes a leadership role regardless of talent, may marginalize more capable individuals. The next generation may seek a shortcut or expect a position without having earned it. Businesses thrive on merit, not just family ties. The way forward, then, is to cultivate a culture of earned respect and contribution from a young age. This involves: Early engagement & exposure: Involving the next generation through factory visits, company events, and age-appropriate discussions about the business. Personal vision: Next gen should be encouraged to develop their own personal vision, particularly aligned with the expectations and requirements of working in the family business. Governance education: The principles of governance such as fairness, accountability and trust need not be shared only when next gen is about to join. Rather, governance education should be an ongoing feature for all family members. Learning these principles helps families better manage the dilemmas and paradoxes that are an inherent part of the family business domain. Employment policy: Before the next gen enters the business, the family should agree upon an employment policy so that both generations develop clarity around expectations and career path. Pride in legacy: Speaking highly of the business’s mission and achievements, while also encouraging children to gain a deep understanding of the industry, its competition, and its products creates a sense of belongingness. Soliciting opinions & participation: Engaging them in discussions and seeking their opinions on appropriate age decisions, builds a sense of ownership and critical thinking. Encouraging external exploration: Actively encouraging children to gain experiences outside the family business through internships or independent ventures broadens the world’s view beyond the family business. Accountability: A sense of pride in family legacy needs balancing with a strong emphasis on personal accountability, performance, and the understanding that positions must be earned through merit. A Cultural shift in language: Moving from “He’s the heir” to “He’s the most capable leader” changes the impact on how presence in the business is interpreted by the next generation. The former suggests entitlement and the latter emphasizes competence. There is a delicate balance between pride in one’s heritage and the capacity to occupy a seat at the table. When family members rise through merit and not just lineage, the business truly pays homage to its founding values.

Constitution Without Courage Many family businesses proudly craft detailed constitutions yet may fall apart. The reason: a family business constitution is only as good as the courage to uphold it. A family constitution is a written agreement detailing the shared values, roles, decision rights, succession plans, and conflict resolution protocols. Families draft it to create a cohesive view of how they want to work together both today and in the future. Families invest in it to create alignment and safeguard legacy. A constitution, in principle, creates clarity that leads to stability and unity; however, without the courage and will to enforce agreed-upon policies, constitutions fail.  What Does “Courage” Look Like in a Family Business Context? Courage is nuanced in the family business context. It stems from self-awareness and deep understanding of governance. It also stems from a sense of duty to legacy. Family businesses are replete with paradoxes and dilemmas. Often, one stands at a crossroads where choices affect both business and family considerations. While families can afford to err on the side of the family when the magnitude of the business is small both in terms of size and family strength, this approach becomes unsustainable as the family business grows. Families appreciating this dynamic choose to create the family constitution. However, many may fail to because of fears such as: Fear of confrontation: Addressing difficult conversations e.g., about underperformance, entitlement, or succession readiness. Fear of upholding roles: Respecting agreed boundaries, e.g., who sits on the board, who stays out of operations. Fear of letting go: Seniors handing over leadership when it’s time. Fear of inclusion/exclusion: Making decisions about who joins the business based on merit, not emotion. Fear of mediation: Engaging in honest conflict resolution processes when tension arises. For constitutions to succeed families need to appreciate that a paper doesn’t implement itself; rather, people with courage do. Courage is, then, the real governance mechanism. When actions match the constitution, credibility grows whereas a lack of courage leads to cynicism about the value of a constitution. To build a culture of constitutional courage families in business can: Hold regular reviews All family members, especially new family members joining the business, should not only receive a copy of the constitution but also be debriefed on it. This is to ensure there is utmost clarity and little room for misconceptions. In addition, families should revisit and reaffirm the constitution annually. Storytelling Acknowledge and celebrate examples where family members chose principle over comfort. Alternatively sharing examples of unsuccessful families primes the family to appreciate the importance of upholding the constitution. Empowered family council Without an empowered family council there can be no accountability and enforcement. The family council is the primary forum for discussing family-related business matters, educating family members, and overseeing the constitution’s implementation. Training & coaching in unconscious biases Although unconscious biases operate outside our conscious awareness and control, they may influence our decisions and actions. Training to address biases equips individuals with self-awareness and tools to act objectively. Conclusion A family business constitution is not a magic wand. It requires courage to act upon. Legacy is preserved not just through vision, but through the discipline to honor shared commitments, especially when it is difficult.

A Purposeful Next Chapter For the Senior Generations Many senior generation members continue to work well beyond their active leadership years because they either derive a sense of identity from the business or have no clear next chapter planned. The senior generation’s continued presence in the business, while commendable, may create several challenges for the next generation: A legacy mindset may dominate: “We’ve always done it this way.” The rising generation is involved but does not have the space or authority to make decisions. With the active involvement of seniors, the rising generation may develop an increasing dependency. Continued involvement of seniors may result in a lack of interest from the rising generation. It is imperative that an intentional transition plan be in place well before the seniors begin stepping back, so they can gradually reduce their involvement and develop interests outside the business. This approach is subtle and effective as the transfer occurs over an extended period and allows for the transition to take place without chaos. Crafting a purposeful next chapter The next chapter may unfold in the following ways: Mentor to rising entrepreneurs Seniors actively support entrepreneurship through mentorship. In this way, the senior leader can transition from active participation in the business to contributing their experience, wisdom, and network to mentoring young entrepreneurs. This ensures their legacy extends beyond the company. The impactful role of a mentor provides a respected platform for their continued influence, ensuring they remain an integral part of the family’s purpose and story, rather than feeling sidelined. It’s a shift from being the “boss” to being the “sage.” Advisory roles In addition, the senior leader can transition from CEO to Chairman of the Board, Head of the Family Council, or to community leadership roles such as Social Club President or Advisor to a philanthropic foundation. This allows them to continue contributing without the daily operational burden. Philanthropy as a strategic lever for legacy For many family businesses, philanthropy is seen as an annual donation or a charitable gesture. However, traditional giving can evolve into a powerful force that addresses societal needs in a more strategic and sustained way. Instead of simply donating, family businesses can: Fund and build vocational centers that trains the next generation of technicians, artisans, or digital specialists, directly addressing skill gaps in a specific industry or the local economy. Promoting Industry-aligned curricula Representation on the boards of business schools allows senior members to contribute their experience and expertise to ensure academic programs are relevant and produce job-ready graduates. Institutionalize Their Wisdom Senior family members should be encouraged to record their experiences through memoirs, articles or recorded interviews. In addition, opportunities for storytelling or guest-speaking and internal training should be created. Providing a purposeful and graceful transition is a tribute to, and an acknowledgment of, the senior generation’s role in building the legacy of the family business. In doing so, family businesses don’t just give back, they build forward.

The journey of an entrepreneur is mixed with sweat, blood and occasionally tears. Entrepreneurship doesn’t come with a manual or a set schedule. It requires an undivided focus, often at the cost of personal and family life. The bigger purpose of creating something meaningful keeps the entrepreneur going, often for decades. Fast forward to when the rising generation joins the business and begins to question everything. Often disagreeing with how business is conducted. At times, joining in with a different work ethic. Differences in opinion and working style may lead the founder to question the contribution of the rising generation and label them entitled. While this may hold true for the rising generation, the founding generation is not entirely without fault. The very contributions that are foundational can, paradoxically, evolve into “founder entitlement”. What is Founder Entitlement? Founder entitlement is an unconscious belief held by a founder. It is based on their role and contribution to the business. Entitlement manifests as the inherent right to control, benefit from, or influence the business in ways that may no longer align with its best interests. Entitlement is rooted in deep emotional attachment, identity, and a lifetime of making unilateral decisions. How Does It Manifest? Founder entitlement can show up in various ways, subtly or overtly: A reluctance to delegate authority, empower the rising generation, or step back from day-to-day operations, even when the rising generation is capable and ready to step in. Continuing to make strategic business decisions without consultation. Managing finances in a way that harms rather than benefits the company. An inability to trust others to perform, leading to constant interference. An emotional attachment to the legacy way of doing business despite better methods and models. Holding on to people out of a sense of duty or obligation for their contribution during the early days of the business. The founder’s self-worth and identity are linked to their involvement in the business The Damaging Impact While it is typical for founders to have some form of entitlement, unchecked founder entitlement can affect all three circles of the family business system. The business system can face stagnation, missed opportunities, and declining competitiveness due to the reluctance of the founder to embrace change, over time spilling its negative impacts onto the ownership cycle. The family system witnesses resentment between generations, demotivation, and eventual disengagement. Why Does It Happen? To tackle entitlement, it is important to understand its sources: The business is often the founder’s “first child” and represents a lifetime’s worth of investment. For many founders, the business is an extension of themselves. Founders fear that if they step away their wisdom and experience will no longer be valued or needed. Without interests outside the business, an exit from active management seems overwhelming. A belief that no one else can run the business as effectively as they can. Strategies for Mitigation and Prevention Addressing founder entitlement requires awareness and subsequent effort, often best facilitated by an independent advisor: For the Founding Generation Invest in interests outside the business and develop a “Next Chapter” plan after full-time business involvement. Gradually step away from being the primary decision-maker to a mentor for the rising generation. Walk the work ethic talk. Do what you expect from the rising generation, even though you may feel you have done enough and deserve ease. Work on listening skills and resist the urge to interrupt or correct. Rather, listen with an open mind and take time to mull over an appropriate response. Appreciate that empowering the rising generation may not be a smooth ride. It is a gradual process requiring patience and acceptance that mistakes will happen. Remember that business acumen is the outcome of experience and effort. The rising generation will get there in due course. Having great expectations without foundation likely sets them up for failure. For the Rising Generation Earning voice & influence in the business through hard work and demonstrated competence Seek first to understand the legacy business model and resist the temptation to critique. Before proposing initiatives, research the background of the problem to understand if the proposed solution has been applied or considered previously. Inertia in a family business takes time to disrupt, and in a family business, slow is fast. The Role of the Family Business Advisor: An independent family business advisor can help founders overcome entitlement. They can: Create a space and structured process for intergenerational dialogue. Many issues are a matter of perception rather than reality. Communication is key to developing clarity. Remind each generation that what they are experiencing is in effect a rite of passage. It is perfectly acceptable to view the world with your own lens if one is willing to accept that multiple realities exist. Design a working induction and exit plan, helping founders find a purpose outside of the business and the rising generation find their purpose within the business. Offer an alternative view to thinking, challenging, preconceived or erroneous beliefs stemming from interactions in the family system.   Founder entitlement, while originating from a place of dedication, can unintentionally impact the business. By recognizing its manifestations and proactively addressing them , family businesses can ensure that a culture of accountability replaces entitlement.  

A company’s mission is what its leadership wants to achieve. A mission statement is a written articulation for that mission. The benefit of a clear, written mission statement for any family business is that it keeps all generations of the family, along with its suppliers, customers and employees, onboard. It provides a sense of direction to its leadership and gives a course of action to its working team. It also instills a sense of accountability in management for its actions and generates quick feedback on business strategy and its execution. In summary, a well-articulated mission distinguishes a well-run company from a mediocre one. “We want to lower the cost of hospitals and labs by providing high quality yet affordable health care equipment with great after-sales service” This mission statement provides clear guidance to the next generation of a Bohra community family enterprise to build upon lifelong achievements of the previous two generations. If the next gen of this family business embraces this statement, it will instinctively know which products/brands to offer, eliminate middlemen to reduce the extra cost, have quality salesmanship to approach its prospects & clients directly, provide best after sales service, among other things. It will make them accountable for keeping themselves lean, shedding all the extra costs so that they can provide quality products that keep the healthcare affordable to the masses. How to have a great mission statement? The key is to develop a clear mission through soul-searching. Without a defined mission initially, a family business may struggle to withstand generational change. Differences in opinions, attitudes, styles, along with communication gaps can plague a family business, potentially leading to existential crises. Any such business cannot survive generational transition unless the family aspires for something beyond mere money minting. That mission must be magnanimous, noble, as well as commercially feasible. A paradox can be sensed here; however, that’s the first screen a business must pass—it must be profitable. The best way for a business to be profitable is to help its customers achieve what they want. Nevertheless, to survive many decades to come, a business needs much more than just profit. It needs to have a noble mission that helps customers and society in general. Its magnanimity, along with noble intent, keeps the family together by settling mutual differences. Once family leadership succeeds in this soul searching by having a shared mission that fulfills the family, its articulation is a continuous ongoing process. With time, a family will be able to come-up with better ways of expressing its mission and values. Envisioning the mission and communicating it effectively is the sole responsibility of family leadership. Leadership must consistently emphasize its focus in all interactions and meetings. This equips everyone with clear criteria against which every decision made in the business is evaluated. The senior leadership of a family cannot fulfill this responsibility unless they have a broader insight of the economic context of the business, which requires them to have an outside view of their family business.  We at Family Biz Solutions aim to provide such insight so that the family businesses can survive intergeneration succession. Our mission is to guide family businesses toward sustainable growth and harmony across generations. We provide expert advisory services tailored to each client’s unique needs, helping them navigate challenges and create lasting legacies.

Family business owners envision the next gen joining the family business and taking it to the next level, yet transforming this vision into reality presents significant challenges. Evolving sociocultural landscape necessitates adjustments to traditional family induction methods, particularly as entrepreneurship gains prominence and accessibility due to factors like venture capital and digital innovation. Additionally, returning foreign-qualified children face hurdles in adapting to both educational gaps and differences in business practices between home and host countries. Acknowledging these changing dynamics, founders must prioritize early engagement of next gen with family business and work on creating quality relationships. Close relationships and communication help parents appreciate their child’s natural inclination, personality traits and strengths. Parents can work on using these insights to shape children for future roles. Introducing children to business at a young age stimulates observational learning, which is an excellent method for transferring the intricacies of business without the need for verbalization. Children grow up idealizing their father: however, they also aspire to prove themselves independent of their father. While the next generation craves freedom to grow and carve their own path they also want to be nurtured. This duality is challenging for both the father and next gen. Often the combined role of the father and founder adds complexity to this dynamic. Next generation should realize their role is not that of consultants or advisors. During the initial days, they must resist the urge to advise their fathers on areas of improvement and instead, focus on developing a holistic understanding of the business. They may share their input as they gradually gain influence within the business. The first step to induction requires the next gen to join the business with an open mind. Humility, curiosity and a willingness to learn are essential qualities seniors expect and value from the next generation. Seniors bear the responsibility of sharing the business’s evolution, encompassing its challenges, sacrifices, and struggles, with the next generation. Next gen watching from the sidelines, often assume they understand how the business works. However, the uniqueness of the business model can only be appreciated once one is actively involved in the business. Next gen often expects seniors to share the ‘secret sauce”, which refers to the competitive advantage or tacit knowledge known only to the business owners. The next gen can learn best by keenly observing and asking the right questions.  Here, they should not expect immediate answers but rather reframe questions if not answered on the first go. Next gen is advised to join the business with the mindset to unlearn and relearn. While academic knowledge is valuable, it may not always be applied directly to the family business situation. One must be willing to adapt classroom concepts to real life situations. However, this unlearning process can be unsettling for the next gen. In such situations, a trusted non-family employee can mentor the inductee by helping them learn the ropes without fear of judgment or failure. In a family business one must be prepared to learn from all stakeholders and not just the owners. Employees, suppliers and buyers, all are avenues for getting an insight into the business. Family businesses face challenges inducting and developing the next gen. If the induction process is smooth it leads to harmony whereas if it is rough it may lead to conflicts. For the growth of the family business, it is imperative that all generations of the family share common values, culture and vision.

Technological changes, shifting consumer tastes and changing social trends have all contributed to the pace of disruption. According to estimates the average life span of a business has shortened from 61 years in 1958 to just 18 years today. More conservative estimates reveal the life span to be only 10 years. Disruptive innovation has wiped out entire industries and poses serious challenges for business.  Dynamics of the family business make them even more susceptible to the challenge of disruptive innovation. Shortened industry life cycles and changing business models mean family businesses need to act with increased agility. Most family businesses are minutely involved in the day-to-day operations of the business and tend to lose sight of the big picture.  Although family businesses realize that the business environment is changing. Most choose to do nothing. Often with the notion that change will not affect their business.  Disruption, however, does not discriminate between corporations or family businesses.   Family businesses can through governance mechanisms ensure continuity. As stewards of the business, it is upon the family to create wealth and protect the legacy of the business. Stewardship of the business means providing direction to the firm. This is different from managing day to day operations. Stewardship is defined by Tomorrow’s company (a think tank) as ‘the active and responsible management of entrusted resources now and in the longer term’. Guiding principles of stewardship are: Setting the course Driving performance Sensing and shaping the landscape Planning for the future With disruptive innovation family businesses need to think beyond current products and markets. Disruptive innovation is not a new phenomenon. However, the rate of change from the first to the fourth industrial revolution has decreased significantly from 160 years to 20 years. Family businesses need to view disruptive innovation not as a threat but rather as a stimulus for continuity and to capitalize on opportunities. In the hypercompetitive market only, those firms will survive that can differentiate themselves. Family firms also need to set their eyes on the horizon to ensure continuity. As the next generation enters the business their dissatisfaction with the existing business model is expected. Years of listening to complaints take their toll in the form of a negative perception of the business. Family business owners have an opportunity here to provide a platform for the next generation to carve a space for themselves within the larger context of the business yet separate from the family business. It is an opportunity for expansion and mentorship.  In addition, disruptive innovation can be a means to diversify the family business and avoid conflict. Family businesses evolve over time from a single entrepreneur to the sibling stage and cousin consortium. Decision making becomes more complex at each stage of the family business evolution, moving from a single decision maker to multiple decision makers.  One strategy to avoid conflict is to create separate businesses with the family business, acting as a holding company. Forward thinking family businesses decide to allocate a certain percentage of profit to explore new ventures. This ensures that the entrepreneurial spirit of the family is nurtured.  Family members are encouraged to explore opportunities. For family business to thrive both the business and the family must succeed. The key to continuity is not just accepting that today’s business may not exist tomorrow but having the intent of working today to secure tomorrow. This is only possible if family businesses create governance structures and act as stewards of the business.