FAMILY BUSINESS

Family Business
A Family Business can be defined as that
created and controlled by related members
through links of blood, marriage or adaption,
and that in groups or owners of this, with or
without profit, who work and develop initiatives
to grow. The family patrimony, and they intend
to preserve the company through several
generations.
 Ownership

• Refers to the control over an enterprise, providing

the power to dictate the operations and functions.
• It is state of owning something as well as the right
or act of being the owner.
• People, government or companies may have
ownership.
 Succession
• Is the process of deciding who will take over your
business in the future when you retire or the unexpected
happens.
• A succession plan outlines who will take over a business
when a business owners leaves. An owner might leave
for a number of reason and might be voluntary or
involuntary. This might be due to retirement, death,
disability, a sale of the business, or a failing out between
business partners.
 Sustainability
• The ability to maintain or support a process continuously over
time.
• Sustainability in business refers to a company’s strategy to
reduce negative environmental impact resulting from their
operations in a particular market.
• To be sustainable, family businesses must have a strong
foundation fortified by family meetings, respectful relationships
and frequent communication. The first step towards sustainability
in your family’s business begin with you.
 Longevity
• The standard form of the word meaning “long life” or
“duration of life” is longevity.
• Longevity in business means sustained success over
time, built on strong foundation for long-term growth.
• The longevity of a family business lies not only in
financial achievements but also in the ability to maintain
bonds within relationships and a sense of unity within
the family.
 Exit Strategies
• An exit strategy is a plan that allows a business owner,
investor or trader to sell their ownership in a company.
• This could mean retirement, sale of the business or
simply winding it up and closing it down.
• An exit strategy is a means of leaving one’s current
situation, either after a predetermined objective has been
achieved, or a strategy to mitigate failure.
Types of exit strategies include;
1. Liquidation – entails the closing of a business
through the sale of
all its assets.
2. Acquihire – where a company is bought solely to
acquire its talent.
3. Bankruptcy – use a legal method for closing a
business is failing
and the debts are
substantially greater than the assets.
 Quiz
1.) It can be defined as that created and controlled by related
members through links of blood, marriage or adaption?
2.) It is state of owning something as well as the right or act of
being the owner?
3.) Is the process of deciding who will take over your business
in the future?
4-8.) Give at least 5 reasons why a business owner leaves?
9.) It is the ability to maintain or support a process
continuously over time?
10.) What is the standard form of the word meaning
“long life” or “duration of life” ?
11.) What is the standard form of word of longevity?
12.) It is a plan that allows a business owner,
investor or trader to sell their ownership in a
company?
13-15.) Give the 3 types of exit strategies?
16-20.) What is Family Business?