I wish it were routine to ask a family business owner about their board of directors and get the kind of answer that leads to lasting success.

It would go something like, “Oh yes, we have a great board. We deliberately brought in people outside the family, and they gave us sound advice. We meet quarterly, we compensate them for their time, we arrange all their hospitality, and even some entertainment once business is concluded. They are vital to our success.”

In a family business, the idea of having a board of directors might seem like overkill, or an expense you can’t afford. Most companies don’t bother to get one until they pass $50 million in revenue–which can be a big mistake, with a heavy price tag.

To be fair, it doesn’t seem like the most important thing when you’re in startup mode…

Family business owners often get tangled up with being “fair,” especially when they make their children stockholders in the business. We get the question often: “Should we pay bonuses, or dividends?”

Unless you are good with the numbers and tax law you should turn to a CPA or tax attorney for help. That is a good place to start, because bookkeeping and staying current with the tax man is no laughing matter…

Without a solid, effective governance, family-owned businesses stand a high chance of falling victim to unique challenges that other, non-family owned organizations don't face on a day-to-day basis.

If you’ve been a part of a family business, even for a little while, you know that unexpected things happen. Plans get changed or derailed. Disagreements arise. Founding family members, being so used to running the business on their own and calling all the shots, get side tracked in pursuit of opportunities that no one else is aware of.