Family Business Owner’s Personal Wealth Question #2: How can you grow your profits and then properly split that pie among family members?
Chances are, your family was a lot smaller (and a lot younger) when you first opened the doors to your business. A growing family presents its own issues, and those include how the business responds to that growth.
“Can the family business continue to sustain current financial needs of the family as the family grows exponentially?” says Kevin Heaton, Principal at i3, LLC in Lexington, South Carolina. “Families define their specific needs to include allocating capital for growing the overall family wealth, including an objective plan for the core business. Efforts through this approach focus on the identification and acquisition of assets that meet both the family’s current and long-term needs, establish a healthy balance for their risk/reward appetite, meet the goals of an investment time-line and support the continued growth of the family business and the family wealth.”