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BIZ TIPS - Family Documents & Policies - WCAX.COM Local Vermont News, Weather and Sports-

BIZ TIPS - Family Documents & Policies

 Family business tip #4 - “Establish family documents and policies.”

 Why the need for family documents and policies?
    Families have many unspoken rules which can be easily misinterpreted.

    Decisions should be made without the absence of emotion often created by family events like death, divorce, or employment.

    Sound planning early on will help avoid costly legal and financial expenses in times of need.

 What are important family documents to have?

    Rules for Entry

    Family employment guidelines

    Buy-sell agreements

    Family constitution

Why do some families resist documents and policies?

    Formality can feel un-natural in a family setting.

    Families tend to be very private about decision making.

    “Well if we love each other, we can work things out…”

Where to start?

    A family council provides a forum for discussing and implementing rules and policies.

    Talk with other family business owners.

    Involve key family employees whom have a more external and grounded perspective.

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