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How to Choose Family Business Advisors

Family business advisors are very important for your family business. These advisors know that family-owned businesses are especially complex and therefore have the right training and the right understanding to address all the many complex issues that arise within family-owned businesses, including conflict, succession and communication issues. In addition, family business advisors are dedicated to giving their clients the right advice based on their experience and education and are committed to helping their clients achieve their business success objectives. In the business world, this type of expertise is extremely valuable. Unfortunately, too many family business advisors fail to give their clients the guidance and advice they need to achieve their business success goals.

The first step in the selection of a family business advisor is the establishment of a strong family council made up of family members who will make the hiring decisions. This council must consist of both the CEO and several key family members who will make the final decisions. It is absolutely essential that the CEO and members of the family council are not only experienced and knowledgeable but also have a clearly defined set of expectations regarding the relationship between the family business advisor and the family council. Often, family business advisors choose their clients based solely on the referral received from a member of the family leadership team. A good family business advisor will listen carefully to this council and consider the recommendations of the council before making any final decisions.

While some family business advisors may prefer to see succession as a form of lottery, it is important that the process be done in the most respectful and professional manner possible. Most family firms have a written succession plan and an overall vision for their firm that is reviewed periodically. These plans should include an executive summary, which should include a short description of the company and an executive summary of key personnel. In addition, these plans should include a section that discusses succession and the expectations of that future CEO. A good family business advisor will listen closely to this section and provide honest advice if the situation warrants it.

Some family business advisors choose to work solely with one or two family members and do not seek input from other family members or from the entire council. These consultants should not expect that others feel the same way about the succession planning as they do. They should, however, offer candid advice to family members and allow those family members to make the ultimate decision. If the advisor seeks the input of the entire council, it is essential that those advisors are respectful of their fellow council members and let them make the decision as they see fit. In all situations, family business advisors should avoid participating in the decision making process unless they completely trust the person or the company that they are advising. You'll want to know how Positively People can help improve your business. 

Many family business advisors choose to work with other consulting firms in order to increase their opportunities for additional compensation. However, when family business advisors provide consulting services they should be prepared to share all of the information that they know concerning the firm, their client, and the overall goals of the firm. The majority of these family business advisors are also actively involved in the investment activities of their clients' firms and play an important role in providing investment management training for their clients. Because they often have a number of relationships with other financial, accounting, and legal firms, family business advisors also provide a significant number of referral opportunities to other professionals. Family business advisors should develop a strong network of referrals that can provide a continuous source of additional business leads and management training. You'll want to check out family business advisors insights today. 

When engaging the services of family business advisors, it is very important to ensure that the advisor is well-qualified and has extensive experience in the particular area of business that you need help with. You should ask family and friends for names of their past advisors and request a detailed list of their key skills, accomplishments, and areas of specialty. In addition to having a thorough understanding of the key skills of your consultant, you should also request a complete list of references that you can call on to confirm the accuracy of their information. Once you have decided whether or not to proceed with the engagement of your consultant, it is very important to make sure that you know everything that will be covered under the engagement agreement before you enter into it. There are many components to a sound engagement agreement, and your attorney should help you draft one that takes into account the best interests of both you and your advisor. Do check out this small business advice: https://youtu.be/0PbjZ01ObLA

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