When is a Family Member Ready to Join the Business?
Balancing development, credibility, and contribution across generations.
By Charlie Carr, CFP® and Charlie Carr, Jr.
We have helped craft family employment policies for quite a few family businesses over the years. There is no one-size-fits-all policy: each family and business are different, and the policy needs to match their unique needs.
Most policies address areas such as education, outside work experience, compensation, performance evaluation, and whether a family member must fill an existing role. The overarching goal is to ensure that next generation family members:
- Understand they are welcome in the business
- Are adequately prepared to contribute
- Do not have a sense of entitlement
- Bring new skills, perspectives, or capabilities to the enterprise
Thoughts on Employment and Succession
Several frameworks describe how individuals develop within a family business. One we find particularly useful comes from Justin Craig and Ken Moores in Leading a Family Business, which outlines the “4 L’s” of development:
- L1: Learn business. Gaining education and working elsewhere to learn how to be an effective employee and a contributor.
- L2: Learn our Family Business. Becoming familiar with the family enterprise through meetings, internships and early roles within the business.
- L3: Learn to Lead. Transitioning into leadership roles, perhaps eventually the CEO position, and helping guide the business forward.
- L4: Learn to Let Go. This may be the hardest step. Stepping back, as part of a process, and allowing the next generation to lead.
Craig and Moores also group these stages into broader phases:
- Apprenticeship (L1 + L2)
- Leadership (L2 + L3)
- Stewardship (L3 + L4)
This framework provides a helpful lens for understanding progression from student to leader to steward.
Signs a Family Member is Ready to Join the Business
Ivan Lansberg offers a complementary perspective in his Harvard Business Review article, The Tests of a Prince (September 2007), outlining four tests leaders must pass to earn credibility:
- Qualifying tests: credentials, experience, and demonstrated competence.
- Self-Imposed tests: personal standards and accountability.
- Circumstantial tests: how they perform during adversity or challenges.
- Political tests: navigating internal competition and gaining support.
Together, these frameworks highlight an important reality: successful family business transitions do not happen automatically. Family members must both develop the capabilities required to lead and earn the credibility necessary to be followed. A well-designed family employment policy creates the structure and expectations that support both objectives. These are well-established frameworks in family business research and provide a structured way to evaluate readiness and development.
Big Canyon Advisors: Our Approach
Big Canyon Advisors is a small advisory firm serving family businesses and family offices. We do not have entry-level positions; our clients expect seasoned professionals with meaningful experience.
When Charlie and Melanie founded the firm in 2020, we decided that our family employment policy would be more rigorous than what is necessary for most clients. Our criteria include:
- A bachelor’s degree in business (advanced degrees or credentials are preferred).
- A minimum age of 30, reflecting client expectations of credibility.
- At least 8 years of outside employment, including demonstrated advancement.
- A requirement to exhibit a clear passion for this business and its clients. They can’t just be looking for a job but must be specifically excited about this business.
- The ability to bring new capabilities or perspectives to the firm.
They can’t just be looking for a job
but must be specifically excited about this business.
A Real-World Example
In June 2026, Charlie Carr, Jr. joins Big Canyon Advisors as a partner. He meets or exceeds all criteria:
- Bachelor’s degree in Entrepreneurship (Baylor University)
- MBA in Cybersecurity (completion expected December 2026)
- PMP (Project Management Professional) certification
- Seven years in the Army, leaving as a Captain
- Several years as a management consultant
- Prior work in an unrelated family business during college
Two years ago, Charlie, Jr. worked with one of our clients, who was so impressed that they later asked him to mentor their teenage sons. That led to developing a structured mentoring program for young men ages 15-25, launching in summer 2026. This represents new capabilities he is bringing to the firm.
Over the past year, we have intentionally prepared for his transition into the business through educational material, client exposure, and weekly discussions. While the learning curve will continue throughout the rest of his career, we are confident that he is prepared to contribute meaningfully.
Looking Ahead
With Charlie, Jr. now a partner, we are excited about the firm’s future. The three of us – Charlie, Charlie, and Melanie – will collaborate on most client engagements, offering a blend of generational perspectives that mirrors the challenges many of our clients face.
Of course, there are lighter challenges as well, one of which is that we both answer to “Charlie.” Junior’s email address is cj@bigcanyonadviors.com, since charlie@ was already taken. When we’re in meetings together, and a client says “Charlie”, we’ll have to guess which one they are talking to. However, I'm sure we’ll work this out over time.
Charlie Carr, CFP® is president while
Charlie Carr, Jr. serves as a partner with
Big Canyon Advisors, LLC, which advises family businesses and family offices.
