Do all decision makers agree on the purpose, or not?

NOTE: As the owner or ownership group, you have a right to establish the fundamental purpose(s) of the business to be whatever you wish. If you’re not clear about your desired purpose, then you’ll find yourself subject to lobbying by others with vested interests. You’re also going to be more easily confused in the face of crises, conflicts or complex decisions; when you’re clear about your purpose, you have a moral compass to guide you through ambiguous situations.

Often, we can be uncomfortable in declaring a purpose that appears self-serving, yet it is what it is. You have to be honest and clear with yourself about it, before you can be honest and clear with others.

Running the business well and reinvesting profits in its growth?

Providing all decision makers with high annual incomes?

Securing the financial future of the next generation and their immediate families?Generating money to support foundation, church or charitable endeavors?

If some combination of the above, how do you rank the purposes?

Purposes need to be clarified to create understanding about the value of maintaining stated priorities.

A clear purpose creates a reference point for discussions/decisions about the priorities of the family/business.

If key decision makers are unable to reach agreement on the business purpose, seek mediation immediately.

Write a clear and focused statement of the business purpose.

Don’t squander good will and emotional capital wrestling with highly charged issues. Get help from a professional mediator.

Make sure you have addressed the retirement, transition, equity and business reinvestment needs that result from your business purpose.