Family Office & Family Business Insights | Big Canyon Advisors

Current Income vs. Long-Term Growth in Family Businesses

Wed, 22 Jul 2026 21:23:56 GMT

Current Income vs. Long-Term Growth in Family Businesses

By Charlie Carr, CFP®

Editor's Note: Family businesses often face difficult decisions about balancing today's financial needs with investing for tomorrow's opportunities. Originally published in Family Business Magazine , this article explores how that balance shapes governance, strategic planning, and long-term continuity.

A second-generation family business owner asked us to analyze their combined family business and family office in order to reduce costs. He believed salaries were too high, staffing levels were bloated and processes were inefficient. After several conversations, building on prior interactions, we concluded that while this business has been very successful, the current owners are overly focused on managing costs and maximizing their current dividends, to the detriment of growth for the benefit of future generations.

Is the primary purpose of your business to provide income for the current generation of family owners, or is it to grow wealth for future generations? If asked directly, every family we’ve worked with says they are building for future generations. However, sometimes their behavior doesn’t match that answer.

Let’s start by saying what we’re not talking about in this article. In the early years of most businesses, the founders are trying to pay their mortgage and feed their family. We are not discussing the family business that is getting off the ground and just providing what the family needs to survive. Over time, often extending into the second or third generation, the business income and value grows to a point where it exceeds what the current generation is likely to spend. As this happens, we sometimes see second-, third- and even fourth-generation business owners who remain focused on maximizing their own income rather than the benefit to future generations.

Years ago, a family business leader told us, “I’m not working my tail off so my kids can live on a beach somewhere.” We echo that sentiment, and that is definitely not the intent here. We don’t want owners living like paupers so the next generation can live like rock stars. On the other hand, a growth-oriented business owner recently said he is conflicted when focusing on opportunities that likely won’t come to fruition during his career – “Am I wasting my time?”

Income focus vs. growth focus

Below are some questions that help distinguish between an income focus and a growth focus. These are not hard and fast rules but rather indicators that need to be considered in their totality. There are gradations to each item, with redeeming qualities on both sides of the equation.

Are you more concerned about how big your staff’s salaries are (income focus) or how much value staff members add to the business (growth focus)? As an aside, in the last few years, each time we’ve been asked whether a business was overpaying its staff, the answer was no. Often, reality showed that they were underpaying those people.

What are you doing to train and prepare the next generation of leaders, both family members and non-family members? Do you have a formal plan for preparing them and giving these leaders opportunities to develop (growth), or are you letting it happen on its own (income)?

Does your governance structure include outside advisers who can challenge and improve the business (growth), or is it just you and perhaps one or two longtime staff members (income)?

Do you have a documented strategic plan for the future, perhaps five or 10 years out? If so, did you create it by yourself (income), or did you involve a broad group of leaders in the creation (growth)?

When you have to make a choice, is it more important to maximize income on current investments and holdings, or to develop and grow holdings for future value?

Why This Difference Matters

You might wonder why you should care about an income focus versus a growth focus. Families that are focused on maximizing income for the current generation often have some mix of the following:

There frequently is a level of dissatisfaction among business staff, as they are often underpaid and they have less opportunity to grow and improve the business. Most people enjoy being part of something that is growing, while just maintaining the status quo is less interesting.

The next generation is often disengaged, even though they expect to receive or inherit the business, as they also have not been given opportunities to grow and improve the business.
Rarely is there any excitement about the future of the business.

The business is no longer growing at rates that it once did. While it may have grown spectacularly in the past, there generally is not a plan for doubling it in the future.

C haracteristics of Growth-Oriented Family Businesses

On the other hand, with families that are focused on growing the business for future generations :

There is a strategic plan, showing how to maintain impressive growth rates.

The current generation is more interested in what value they get out of staff, and may even slightly overpay them to ensure they stay and build for the future.

The next generation wants to be in the business and is being prepared for leadership.

Family members and staff are excited and generally having fun in the business.

Governance is designed for the next generation , providing the oversight and guidance they will require when they take over ownership – not necessarily the simpler governance that has worked for the current generation.

How to Shift Towards Long-Term Growth

If you find yourself on the wrong side of this equation, there is still hope. You may need help from an outsider to turn things around, but begin by assessing your current condition. Engage with your key staff and truly try to understand their concerns and challenges. Talk to your next generation, identifying what they want and what will get them excited about the business. You can’t force the next generation or current staff to be in the business, but you can create a vision that is exciting and enticing enough that they want to be part of it. Then, as you engage the rising generation, implement the governance that the next generation will require to bring that vision into fruition.

Finally, involve your key staff and the next generation in creating a long-term strategic plan for the business. If you can convince them that you are sincere in your efforts, you might be surprised by what they come up with and the newfound excitement and joy in running the business. In fact, you might even find that the road to building long-term value also has a side benefit of increasing your current income.

Charlie Carr, CFP® is president of Big Canyon Advisors , LLC, which advises family businesses and family offices.

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The Hard Challenges that Large Family Offices Face

Fri, 17 Jul 2026 21:34:53 GMT

The Hard Challenges that Large
Family Offices Face

By Charlie Carr, CFP®

While your family may not have a family office, or perhaps has a small one embedded in the

family business, many of the challenges of large family offices
are either common to smaller offices or perhaps are lurking in your future.

A very large family office client recently said they have spent the last decade dealing with tax and estate matters, developing their investment platform, and generally building the infrastructure to support the family. While these tasks are never completed, they believe it’s time to shift their focus to helping build and support the family’s human capital – their purpose, togetherness and family dynamics. We’re finding this is a common concern among large offices, and it’s likely much harder than the prior tasks.

A family office supporting much fewer family members recently bemoaned how difficult it is to get family members to respond to requests, such as where and when to have the annual family retreat next year. That same complaint, a lack of engagement from family members, also plagues the larger offices.

While your family may not have a family office, or perhaps has a small one embedded in the family business, many of the challenges of large family offices are either common to smaller offices or perhaps are lurking in your future. Below are six categories of challenges large family offices are facing.

Shared Vision / Values

If the family does not document a shared vision during the life of the wealth creators (usually the first generation), it becomes very difficult to do so later. Lacking a foundation of shared vision and values, they are much more likely to splinter by branch. A speaker at a recent Transitions conference said the greatest gift parents can give their children is good governance.

We’ll add to that; they should give them a vision and values that transcend the generations.

Related to this, we’ve seen several very large families weighing whether they should offer separate family retreats in the future, because branches of the family are so strongly split over political views. Every family has differing opinions on politics (and religion, table manners, hair styles, etc.), but are we forgetting that we’re still one family?

We would prefer to figure out ways to communicate and celebrate what we have in common, rather than focus on our differences. Identifying such vision and values helps.

Focus on the Family's Human Capital

Having a large number of family members, perhaps hundreds, creates a variety of challenges to an office. How do they provide customer service? Do they assign representatives based on generation or by family branch? They might need a Customer Resource Management (CRM) tool just to track preferences and activity with different family members. As each new generation become adults, the offices struggle with how to provide services to that generation. Often, the younger generation doesn’t yet have the money to fund those services, so the office has to find creative solutions for funding the family office .

As generations grow, there also can be a large disparity of wealth among family members. Some branches may spend far more while others may invest better. As a result, one family member looks to the office to help with basic budgeting while another needs help in acquiring or managing an airplane.

Helping Family Members Find Purpose

The larger the family and the greater the wealth, family members may struggle with finding purpose in their life. While such challenges impact families of all wealth levels, when the business is wildly successful, later generation owners have a greater likelihood of dealing with these challenges. William Vanderbilt said, “inherited wealth has been a real handicap to happiness.” We once knew a large family that discouraged family members from getting jobs (“they’ll take it away from someone who really needs one”), without realizing that they are removing one of the key means of finding purpose in life.

Such family offices are struggling with how to address mental health and addiction issues, as well as looking for ways to help educate family members on how to manage wealth (do they use one-on-one training, classes at the family retreat, three-minute videos or something else?).

Improving Family Engagement

Family offices constantly struggle to get family members to engage with the office. This might be getting responses to where to hold this year’s family retreat, gathering details for tax compliance or just scheduling an annual or quarterly review meeting.

We’ve had offices bemoan that family members don’t open the quarterly newsletter they create and then complain that the office stopped creating it.

Most of these families have a variety of foundations, created to get family members engaged in donations . One of our very large offices wants family members actively involved in making donation decisions, rather than staff making those decisions.

We’ve learned that as foundation assets grow, most families migrate to staff-led decision-making, rather than family-led. This direction may not align with the family’s desires.

Family Office Services: Finding the Right Balance

Family offices of all sizes struggle with what services to make available to the family, balancing costs and usefulness. As for offices supporting larger families, we see three services that are debated most heavily.

1. Should the office support family members’ personal IT needs? With growing wealth and complexity, the family’s technology needs grow along with the cybersecurity risk. While there is a cost to supporting technology for large numbers of family members and houses, the offices who provide such support find that it is one of the areas where the family is most pleased.

2. Does the family office support one-off businesses or investments? Wealthy family members are bombarded with opportunities to go into business with someone or to invest in a business or fund. The professional investment staff of the family office are inclined to always say no, as they believe the family is better off sticking with their investment process. They’re frequently correct, as the ideas might be half-baked. Does the office help with analyzing such opportunities, providing advice on whether or not to get involved, and perhaps even improving the proposition? If the office doesn’t help, then family members are more likely to just do it on their own. Some offices even provide accounting support to the family’s early-stage business ventures, or perhaps offer a strategic outsourced accounting relationship.

3. Personal security. We’re constantly amazed at the family members who tell us they don’t need to worry about security because they “stay under the radar,” despite various published articles about their business and public quotes from family leaders. This is one area where you really don’t want to wait until a problem arises to address the possibility. It is a major challenge if family members travel internationally, but even within the United States, there are concerns. One client recently told us about an unknown person knocking on the patriarch’s front door at dinner time to pitch an investment idea.

"We described these challenges at a recent gathering
of family office leaders, and the most common reaction
was great relief that they weren’t alone in facing them."

Building Family Office Infrastructure

We opened by saying that such offices are shifting from building their infrastructure to focusing on human capital. However, there are still a few elements of infrastructure that continue to be flies spoiling the ointment, especially technology. There are limited integrated options, some of which have major detractors and remain very expensive. Every family office we’ve spoken with is bemoaning their technology options.

Another infrastructure challenge also plagues businesses: finding good staff. Their challenge is compounded by intentionally maintaining a low profile (unlike a business, family offices often don’t want outsiders to know they exist), and since they are thinly staffed, there may not be advancement opportunities. Related to this, it is difficult to benchmark compensation and ensure they are paying competitively. While there are several decent family office compensation benchmarks , geography has a large impact, and jobs with the same title may vary drastically.

Every Family Office Faces Different Challenges

You might have noticed that this article highlights the challenges without providing the solutions; that is because the solutions are difficult and highly customized to each family. We described these challenges at a recent gathering of family office leaders, and the most common reaction was great relief that they weren’t alone in facing them. This is one of many areas where networking among family offices provides tremendous value.

Charlie Carr, CFP® is president of Big Canyon Advisors , LLC, which advises family businesses and family offices.

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A Family Business Dividend Policy Helps Ensure Predictability and Family Harmony

Wed, 08 Jul 2026 20:29:10 GMT

A Family Business Dividend Policy Helps to Ensure Predictability and Family Harmony

By Charlie Carr, CFP®

A thoughtfully developed dividend policy does more than determine how profits are distributed. It establishes clear expectations, reduces uncertainty, and provides a framework for balancing the needs of today's shareholders with the long-term health of the enterprise.

In the early years of a business, when the founding generation needs or wants extra cash, they make

a distribution from the business to their personal account (if the company is turning a profit). Over the years, they gift or sell ownership to the second and perhaps third generations, and distributions become more complex.

When siblings and cousins - each with different skills, interests and needs, some working in the business and others not - share ownership, they may argue over how and when distributions should be made. Even if everyone is ultimately content with the amount of money distributed, disputes may arise about their predictability and how the amount is determined. A dividend policy can help the family maintain unity.

A dividend policy is a written statement specifying a philosophy about distributions - their timing and method. The dividend policy usually includes caveats, allowing flexibility when market or business conditions change, or in a year when the board votes to fund additional capital investments in lieu of funding the dividend.

In a family business, a dividend policy is generally not a legal agreement. It does not hold the board or owners to its provisions, but it does provide insight and direction.

Minority owners often tell us that they understand why dividends are not paid in a year when the market is in upheaval or when the business made a major acquisition. However, they often want some indication of what those dividends will look like in normal years. Each shareholder has different needs and interests, and such a policy provides visibility to everyone.

Before describing such policies, let's review what is being paid out. As a business makes profits, there are three ways those profits can be used:

To pay incentives to staff (bonuses or profit sharing).
To reinvest in the business, perhaps by funding new endeavors, paying down debt or building reserves.
To pay distributions to owners or redeem shares from owners.

Most businesses choose a combination of the three options. A stated dividend policy provides direction to owners and the board. In most instances, the policy is not a lengthy document, just a few sentences or perhaps up to a page.

The largest family businesses, likely generations removed from the founders, often mitigate dividend arguments by having trusts as a buffer between the business and family owners. In good years, or perhaps following periodic transactions (e.g., selling a property or business unit), the business makes large distributions into the family trusts. Family members use the trusts for living and other financial needs and become interested in distributions if the trust is running low. This frees the business to reinvest, avoiding an annual discussion.

Dividend Philosophy

A dividend policy usually opens by specifying the family's philosophy. This is a general statement that captures their intent. Such statements can be quite diverse. Here are just a few examples:

Only those working in the business should benefit from it. Such a family does not pay dividends, instead focusing on providing bonuses to those in the business and reinvesting in the overall business. Owners not working in the business can realize a benefit only by selling their shares. This may cause challenges when the business is highly profitable and struggles to find new investments for those profits. Note that if this is a flow-through entity (i.e., where the income and taxes are reported on each owner's tax return), the business may still issue a distribution to cover annual tax liability.
Those impacting business growth and performance should receive additional benefit. In this case, the board may provide cash and perhaps extra ownership shares as a bonus to those working in the business, while still paying dividends to all owners.
We don't want family members who don't work in the company to live off it. Such businesses still provide dividends, but perhaps not as large as they might be financially capable of. They may find ways to encourage family members to hold a job, whether in the company or outside. The business is stewarding the wealth for future generations.
We want to provide a consistent cash flow to owners. These businesses try to provide a predictable and constant dividend stream, perhaps not as large or as small as the net income suggests, in order to ensure dividends can be paid in both good years and bad.

Defining a dividend philosophy is a great activity for a family meeting. Talk through the goals and interests of various owners and see if you can create a philosophy in one or two sentences. The more the family understands the business requirements and philosophy, the more likely you are to have unity and agreement. The process of defining this philosophy can be as important as the resulting statement.

Dividend Timing

The policy should address when dividends will be paid. Will they be paid quarterly, as many public corporations pay dividends; annually, as many private businesses do; or every few years based on business performance? If dividends are paid annually, will they be paid at the end of the year, based on projected financials for the year, or sometime in the first quarter of the following year, after the full year financials are known - or will that amount be broken into quarterly payments for the next year?

"The more the family understands the business requirements and philosophy, the more likely you are to have unity and agreement."

Dividend Methods

Family businesses provide dividends in a variety of ways. We often see businesses define a fixed base payment - some amount that can be sustained in good and bad years - plus a variable component to boost payments in good years. Here are some of the most common:

No dividends. Only owners who work in the company see a benefit from that ownership. Other owners see the growing balance sheet but need to sell shares in order to receive a benefit.
Dividends only following key transactions. The business may go years between payments, although those payments may be quite large following liquidity events.
Which way is the wind blowing? The board or controlling owners choose an amount based on a review of the business's performance, their own personal needs and the industry. Such distributions are not predictable or consistent.
Constant amount. Dividends are the same amount each year, regardless of the business's growth or performance.
Specified percentage of net income or cash flow.
Tax distributions (for flow-through entities). An amount is distributed based on the most common tax rate. Some companies base distributions on the highest tax rate within the ownership group.
Percentage of the value of the business, as an attempt at providing a yield on investment.
Distribution based on a different metric. For example, families may pay out the rent received on a specific income-producing property (even when that property is unrelated to the rest of the business), or distribute rent on land owned, as though that land were rented out to a third party.

The last method specified, distribution based on a different metric, is sometimes used as a base amount. The

business might own an office building near its manufacturing plant and rent that building to unrelated parties.

The net income on that building is paid as a dividend to owners, on the premise that even in a bad year, that

amount can go out to owners. In good years, owners may receive a portion of the net income from the main business as well.

As you define your dividend policy, it may be valuable to compare that policy to the market. How will the income stream compare to what your competitors in the industry are paying, as well as to an investment in the stock market? It's easy to find out what your public competitors are doing; you'll likely have to rely on networking

and relationships to learn the policies and payouts for privately held competitors. You shouldn't let a competitor

prod you to pay more than the business can sustain, but such a comparison can serve as a benchmark for the family.

There can be great value to being part of a family business, both financially as well as relationship-wise. Thinking through and developing a dividend policy can reduce the friction in the family while providing value to each owner.

Charlie Carr, CFP® is president of Big Canyon Advisors , LLC, which advises family businesses and family offices.

Editor's Note: This article was originally published in Family Business Magazine in 2021 and is republished here with permission.

Celebrating in a Family Business

Tue, 30 Jun 2026 21:50:11 GMT

Celebrating in a Family Business

By Charlie Carr, CFP®

"Whether a business has 10 employees or thousands, the challenge

of cultivating a culture of celebration is universal."

"We really want to have a culture of celebrating, but in reality, we suck at it.” A recent statement from a family business leader echoes sentiments expressed by family businesses nationwide for decades. Whether a business has 10 employees or thousands, the challenge of cultivating a culture of celebration is universal. Perhaps it is time to reflect on the true meaning of celebration and adjust our behavior to align with the culture we aspire to create .

An analogy from the farming world sheds light on this challenge. We plant in the spring, but we can’t celebrate

because we’re uncertain about the weather and the success of our crops. We begin harvesting in mid-summer, but even if the initial harvest is promising, we remain uncertain about its ultimate outcome or if we’ll complete it before the first freeze. After the harvest, even if everything went well, we store and sell the produce throughout the year, leaving us uncertain about prices and product freshness. And just as we sell the last of the previous year’s crop in mid-summer, we find ourselves starting the next harvest, making it seem odd to celebrate the past year when the success of this year’s crop is uncertain.

Why Celebration Matters in a Family Business

Most family businesses are not akin to baseball teams that celebrate winning the World Series at the end of the year. If that were the sole criterion for celebration, only one out of 30 teams would celebrate each year. Businesses are continuous endeavors with inherent uncertainties in each step and season. However, the behaviors we celebrate multiply, resulting in more of the desired behavior. Additionally, working in an environment that values celebration is more enjoyable. Existing staff members are more likely to stay, and attracting new talent becomes easier. Family businesses possess unique cultures, and celebrations should be a defining feature that sets them apart.

But what constitutes a celebration?

Building a Culture of Celebration

According to Merriam-Webster, it involves marking something with “festivities or other deviation from routine.” Celebrations can take various forms, such as parties, happy hours or large gatherings. They can also involve providing breakfast or lunch for the office or a specific group. Personal acknowledgments, such as pulling someone aside to recognize and thank them, can also serve as celebrations. It could be as simple as taking someone to lunch or giving them tickets to a game. While grand celebrations are enjoyable and noteworthy, small and personal

celebrations can hold even greater significance for some of your staff members.

Now that we have committed to making celebration an integral part of our culture (which you implicitly agreed to by reading this far), let’s explore some strategies for making it happen. Regardless of whether it has been a financially successful year or a challenging one, there is always something to celebrate.

Family Celebrations

While our focus primarily lies on benefiting staff and customers, we should not overlook celebrating with our family

and owners. This can take the form of an annual or semi-annual dinner, a family retreat or another special event. Taking the time to recognize and appreciate our collective accomplishments allows the younger generation to witness and understand that celebration is an inherent part of our culture. It may even pique their interest in joining the business .

Significant Milestones

When was the business founded? Don’t miss the opportunity to celebrate significant milestones like 100 years or even 10 years in operation. These occasions are the obvious ones to acknowledge. Seek out other key anniversaries and celebrate them as well. When did you launch a pivotal product line or open a landmark store? Let’s not overlook important moments simply because we didn’t think about them in advance.

Fun and Unique Celebrations

Remember Grandpa Harry, the founder of your family business who passed away 20 years ago? Perhaps it’s time to

start celebrating his birthday annually. Bring cakes to each location and throw a lighthearted party with your staff.

When times are good, this celebration can be more extravagant, but even during lean years, there are still ways

to commemorate the occasion. We’ve seen businesses in Kentucky celebrate Derby Day, while others in

California and Texas mark the beginning of rodeo season.

"Working in an environment that values celebration is more enjoyable. Existing staff members are more likely to stay, and attracting new talent becomes easier."

Staff Recognition

Continually be on the lookout for staff members who exemplify your company values, accomplish great things or take the initiative to innovate . This might be a department or group within your business that successfully implemented a new feature, created a new product, executed a successful sales campaign or survived another tax season. Reward their behavior. It can be as simple as treating them to lunch or providing a gift card, or as elaborate as publicly acknowledging them in a company-wide meeting. Each leader should regularly identify someone to acknowledge. If you can’t find someone to celebrate at least once a month, it’s a sign of complacency.

Achievement of Goals

Let’s not become so fixated on the next goal that we forget to pause and acknowledge the one we just achieved. Even if the upcoming goal or milestone is more significant than the current one, your staff deserve recognition for their accomplishments. This acknowledgment might be the encouragement they need to tackle the next

challenge with enthusiasm.

Birthdays and Anniversaries

Decades ago, during a leadership seminar, a fellow attendee mentioned that he personally delivers a card and gift to each staff member on their birthday and work anniversary. This was no small feat, since he oversaw a call center with over 1,000 employees! The rest of us were amazed and asked how he managed to find the time. His

response was profound: “Those people are my job.” He prioritized his staff above everything else because he recognized their importance. Remarkable!

Celebrate Throughout the Business Cycle

Remember the farming analogy from the beginning? Even though there may be setbacks at each stage of the process, let’s continue to celebrate every step. It is part of our culture, or the culture we are now striving to establish. Make a party out of starting to plant, provide pizzas when planting is completed, serve bagels when

harvesting begins and throw another celebration when the harvest is finished. Personally acknowledge individuals who went above and beyond during each cycle, perhaps by treating them to lunch or offering a gift card.

Celebration Strengthens Family Business Culture

Your business is unique, and so should be your approach to celebrations. It is crucial to decide to make celebration an inherent part of your culture and take proactive and deliberate steps in that direction. Instead of solely focusing on the next challenge and its associated risks, take a moment to celebrate your recent achievements. Proper celebrations will inspire staff to embody your company values, foster loyalty, and differentiate you from competitors. Let it be your competitors who “suck at celebrating,” not you.

Charlie Carr, CFP® is president of Big Canyon Advisors , LLC, which advises family businesses and family offices.

Editor's Note: This article was originally published in Family Business Magazine in 2023 and is republished here with permission.

Innovation is NOT a 4-Letter Word

Mon, 22 Jun 2026 20:57:10 GMT

Innovation is NOT a 4-letter word

By Charlie Carr, CFP®

"We know we need to come up with new ideas to grow, and we know that will involve some ideas that fail, which makes it scary. We need to remember that change is good and not a betrayal of the family’s founders. In fact, such changes often honor those founders."

Last summer, my wife and I spent a week in the Virginia mountains, including several days hiking various trails in the Shenandoah National Park. On one of those trails, three times we encountered a long, slithery critter with a noisemaker on its tail. Like Indiana Jones, I really, really do not like those animals. If I avoid thinking about them or naming them out loud, will that keep them from being real?

This analogy might over-state the degree to which many family businesses avoid innovation, but probably not by much. When we ask about it, they often pause for a long moment, hesitating to answer, then speak in hushed tones as though they were in a church or a library. Often, the younger generation is interested in innovating, while feeling constrained by the older generation who says things are working well, we’re making money, and let’s not rock the boat.

In our discussions, however, even the older generation realizes that standing still is not an option – the number of members that count on distributions is growing, the industry and market is changing, and if they want the business to thrive for another generation , they will need to innovate.

A few years ago, one client told us they were not innovative. When we pointed out five or six very innovative things they had done in the past, they shifted and eventually defined a goal to not be bleeding edge on new processes, but rather to be “fast followers.” We know we need to come up with new ideas to grow, and we know that will involve some ideas that fail, which makes it scary.

We need to remember that change is good and not a betrayal of the family’s founders. In fact, such changes often honor those founders. In nearly every family story we’ve heard, the founders were innovative. Let’s make use of a mantra we heard elsewhere: new ideas, old values.

What Innovation Really Means?

Perhaps we are defining innovation in too grandiose a manner. Many people only think of innovation as large initiatives such as the way Amazon upended distribution models or Uber transformed transportation. Those were definitely innovative.

However, let’s propose a much more flexible definition. Innovation is doing things in a different way from what you have in the past to improve the experience or profitability. This might be copying something you see a competitor doing or applying practices used in a different industry. It might be tweaking the way your divisions team up on a product, adjusting your packaging or trying a new way to market your services. Sometimes it’s as simple as modifying an input form, and other times it’s experimenting with a new product line. It might even be tweaking your customer service practices to provide a higher level of client delight.

"Innovation is doing things in a different way from what you have in the past to improve the experience or profitability."

Creating a Culture of Innovation

In every business we’ve seen, there are staff with great ideas to improve processes, timing, profitability, and products. However, many businesses do not welcome new ideas, pushing such thoughts into submission. “This is the way we’ve always done it.” “It’s not broken, so don’t fix it.” “Nobody ever got fired for choosing IBM.” (Okay, that last one is getting dated.)

The problem is that complacency creeps up on you. Blockbuster didn’t see streaming coming. Taxi companies were upended by Uber almost overnight. If employees are not encouraged to experiment with smaller changes, then they will never come forward with big ideas.

Early in my career, I recall going to management with an idea of a different way to handle some technology processes, which would have saved several million dollars per year. I was dismissed as inexperienced and ridiculed for the idea. Three years later, the company was forced to make those exact changes due to industry disruptions. The business could have saved quite a bit of money in the interim and would have had the luxury of easing into the changes. Their culture was hostile to new ideas.

Let’s create a culture where innovation is welcome, even encouraged. Tell your staff you welcome new ideas for improving processes, diversifying your revenue streams and growing the business. Then follow through by actually trying out their new ideas. Celebrate new ideas (we said in a previous article: behavior that is celebrated is repeated). In fact, if you really want to encourage new ideas, celebrate the ones that failed; then your staff will know that it’s okay to experiment and they won’t need a 100% success rate.

Embracing Innovation Without Abandoning Family Values

The first step in changing your culture is acknowledging that innovation is good and that you welcome new ideas. Write this down and discuss this desire as a family and with your board and leadership team. You might even want to recognize your failure to foster ideas in the past. Eventually you’ll want to communicate to your broader company, but it’s usually best to start with the smaller circle. Get their input into how you shift your focus.

Next, acknowledge innovative ideas from the past. Think through and document the innovations that brought the business to the current stage. Begin to celebrate your innovative history. Hopefully, you can identify some recent innovations, even if very small, and acknowledge and celebrate the staff who created and fostered them. Decide how you will celebrate such innovation in the future will that be at a staff meeting, an individual note or message, some type of innovation reward, or another method?

We usually find that it works best to take at least a few months of incubating the new culture in the family and leadership team before rolling this out to the rest of the enterprise. You want to identify and change the areas where you have suppressed new ideas.

At the right time, you can then reach out to the overall enterprise and begin encouraging their participation. Let’s find something other than the much-maligned “suggestion box” to gather ideas. We want employees to feel welcome to raise ideas, to be free to experiment within parameters, and to be encouraged even if the ideas don’t work. In a few instances, we’ve worked with clients to create an Innovation Committee. These groups were really an excuse to give the next generation of family and non-family leaders an opportunity to grow and demonstrate their skills.

The committees were comprised of next generation leaders across various divisions of the family business, they met monthly, and they were intentionally focused on promoting cross-business line cooperation while seeking ways to grow revenue and profitability perhaps adding new revenue streams, improving production and growing profitability. This was not a permanent solution, but rather a means to change the culture. Such a committee doesn’t work in every situation, and the best solution is encouraging innovation across the entire company.

If you want to explore more ideas around innovation, we highly recommend Josh Linkner’s book, Big Little Breakthroughs, How Small Everyday Innovations Drive Oversized Results .

Charlie Carr, CFP® is president of Big Canyon Advisors , LLC, which advises family businesses and family offices.

Does Your Business Have Traditions, Customs or Policies?

Sat, 06 Jun 2026 02:16:51 GMT

Does your business have traditions, customs or policies?

By Charlie Carr, CFP®

Traditions in a family business are a great thing. Recreating grandma’s dressing recipe at Thanksgiving, celebrating the founding of the business, or recognizing every employee’s birthday the same way that the founder did are traditions that should be continued. These are NOT the traditions we are discussing in this article.

We’ve seen this scenario too many times: Grandpa started the business, but now his children are running it, and tensions are growing. The grandkids are coming into the picture, and they’re frustrated. Family members argue about spending decisions, staff management, and strategic direction. It’s still profitable, but is it sustainable for the next generation?

The older generation tells us that the business has strong and enviable human resources policies. However, employees tell us they haven’t received a performance review in years. One family member says the business’ expense management is very strong, while his sister complains that he spends three times as much on his company credit card as she does. Two siblings are actively undermining an employee because they think she should never have been hired – their brother hired her without consulting anyone else.

Every business operates on a variety of business policies. Ideally, those policies have been thought through, written down, and are practiced consistently. However, we often find that in family businesses, those policies are really customs: we think this is how they work, they aren’t consistent, and they definitely are not written down. If we’ve done this across generations, then they become traditions, but they aren’t documented or consistently followed, so they have not become real policies.

We see variations of this often, sometimes before the problem becomes a crisis, and sometimes when the crisis is full-blown. While communication, leadership, and governance issues certainly need attention, one major issue is the reliance on customs rather than formal policies.

Why do Customs or Traditions Fall Short in Business?

You might think, “What’s the problem? We’re a family business, and traditions are what make us special.” While traditions are important for celebrations and culture, when they replace formal, clear business policies, problems arise. Here's why relying solely on traditions can be risky:

Inconsistency: Without policies, practices can be inconsistent. One division might approve team lunches, while another prohibits them. One family member may hire staff after a brief chat, while another insists on thorough background checks. Inconsistent approaches confuse both employees and customers, creating friction and inefficiency.
Undefined and Shifting Traditions: Traditions are rarely clearly defined, and as a result, they can change over time—or worse, change depending on circumstances. Two siblings might justify their actions with stories about their father. One recalls a time when their father fired a vendor for poor behavior, while the other recalls a similar instance where a vendor was retained. This lack of clarity results in conflicting actions that can drive confusion and create tension.
Misalignment with Reality: What we think of as “tradition” may not actually reflect the way things are done. We’ve had family business owners describe their vacation policies, which were completely different from what their employees describe. Misaligned expectations lead to frustration and conflict, and over time, the business suffers.
Lack of Strategic Intent: Traditions often develop organically, but that doesn’t mean they’re well thought through. Just because something has always been done one way doesn’t mean it’s the most effective or best approach. Business policies are designed with intention, carefully crafted to align with the company’s goals, mission, culture, and long-term strategy.
Practices conflicting with our values: Because the business practices are not consistent and documented, there is a greater danger that those practices do not match the intended values of the business and its owning family.

While traditions are important for celebrations and culture, when they replace formal, clear business policies, problems arise.

The Cost of Not Having Policies

These inconsistencies lead to real-world issues: legal risks, HR problems, family squabbles, employee confusion, and eventually, lower financial performance. Without clear policies, your business is exposed to unnecessary risks, and the lack of structure makes it difficult to operate efficiently.

The Benefits of Having Clear Policies

Creating formal, written business policies helps a business avoid the pitfalls listed above. Here’s why:

Consistency: Policies ensure that everyone in the business is following the same guidelines. This brings stability and makes operations run more smoothly.
Clear Communication: Well-defined policies clearly communicate expectations from the controlling generation to the staff and future generations. Everyone is aligned, and there’s less room for confusion.
Risk Mitigation: Policies help you avoid legal challenges. For example, if you clearly define your hiring practices and follow them consistently, you reduce the risk of discrimination claims. The same goes for financial practices, expense management, and other areas of the business.
Flexibility with Accountability: You can build flexibility into policies by defining provisions and exceptions. But having a clear process for approving exceptions helps keep the company accountable and transparent.

What Types of Policies Should You Have?

If you’re ready to implement policies in your business, there are several areas where they can make a significant impact:

Hiring Practices : Ensure you have a consistent and fair approach to hiring that includes clear qualifications, interview processes, and background checks.
Performance Reviews: Establish a system for providing regular, constructive feedback and measuring employee performance.
Expense Processes / Reimbursements: Create clear guidelines for how expenses are handled, including approvals, limits, and reimbursement procedures.
Budgeting / Financial Planning: Develop formal processes for budgeting, forecasting, and tracking financial performance to avoid overspending and mismanagement.
Strategic Planning: A clear, documented strategic plan helps you align everyone with the future direction of the business and gives your family a roadmap to follow.
Cybersecurity Practices: In today’s digital age, clear cybersecurity policies are essential. Define acceptable usage of public Wi-Fi, data handling procedures, password usage, and other security practices to protect sensitive information.
Social Media Usage: With the prominence of social media, set clear guidelines for how employees represent the company online.
Record Retention: Create policies for how long records are kept, what gets archived, and how documents are disposed of when they’re no longer needed.
Board Practices: Document how your board operates, including the decision-making process, member roles, and meeting structures. This is helpful for both advisory and fiduciary boards.

The Importance of Policies for Long-Term Success

In family businesses, especially those transitioning from one generation to the next, establishing formal policies is critical for maintaining stability, reducing conflicts, and ensuring long-term sustainability. By implementing policies, you’re creating a foundation for success that can withstand challenges and adapt to the future. Policies guide how decisions are made, how employees are treated, and how the business operates on a day-to-day basis.

As the business evolves, so should its policies. But at every stage, it’s vital to ensure that these policies are clear, consistent, and aligned with your company’s values and goals. By doing so, you’ll provide the structure and direction needed for your business to thrive for generations to come.

Charlie Carr, CFP® is president of Big Canyon Advisors , LLC, which advises family businesses and family offices.

When is a Family Member Ready to Join the Business?

Mon, 11 May 2026 23:48:45 GMT

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.

Strategic Plan vs. Business Plan

Fri, 01 May 2026 21:34:48 GMT

Strategic Plan vs. Business Plan

By Charlie Carr, CFP®

Family businesses and family offices often passively resist our prodding to create a strategic plan . A strategic plan is important for any business or organization, at any stage of its life, but it often becomes critical as a business transitions from one generation of leadership and/or ownership to the next.

A strategic plan is a plan for the next three to 10 years. Let’s contrast that with a business plan, which is a one-year

plan describing the investments, initiatives and growth that you anticipate for the coming year and often is encoded in your general ledger as a budget. The strategic plan encompasses the initiatives for this coming year

but goes much farther, laying out how you will grow the business, prepare for succession and achieve the family’s and business's vision for the next three, five or 10 years.

Why the resistance?

These are real answers; I didn’t make them up!

We already have a strategic plan — in fact, here’s the envelope [or cocktail napkin] where I wrote it down.
We created a strategic plan in the past and it didn’t work. Staff didn’t buy in, we got busy with other things, and we lost track of it.
We don’t know what will happen in the future, so we can’t create a plan. We’re impacted by the economy, government, weather, pandemics etc. That may work for somebody in a more predictable industry, but not us.
We’ve grown the business just fine over the last 40 years without one; why change now?
Frequent reason, but not stated out loud: If I convene a group to create a plan, then I may not be able to control the output, or someone may discover that I don’t know where we will be in five years.

Creating a strategic plan prompts leadership (family members and business leaders) to be proactive rather than reactive.

Benefits of strategic planning

Our not knowing the future is a perfect reason to create a strategic plan. Let’s convene a group of people, think about what we do and don’t know, and try to grow or improve this business. There are many benefits to such an effort:

Creating a strategic plan prompts leadership (family members and business leaders) to be proactive rather
than reactive as they think longterm about the business and economy.
The process challenges the team to think about aggressive or seemingly impossible goals and come up with ways to achieve them.
It facilitates gathering team members with different thought and work styles and creating solutions for operating differently — we’re better together!
Once you begin the planning process, your eyes are open to new opportunities in the market or industry around you. It’s amazing how many opportunities that might have been missed otherwise arise while we are doing strategic planning.
Family and staff regain enthusiasm for what can be created in the future.
Next-generation leaders get an opportunity to rise up through participating in the process.

The process of creating a plan is as important as the resulting plan.

Strategic planning guidelines

The process of creating a plan is as important as the resulting plan. We work with businesses across industries. While we’d love to take credit for the benefits they receive from such planning, we’re certainly not telling farm clients when to plant or harvest, or manufacturing clients what changes to make in their processes or product features, or real estate clients how to improve their properties. Here are some general guidelines to think about:

Who is involved? The larger the team, the better. We worked with a group in recent years who named 18 people to the strategic planning committee. It worked great, and we got broad buy-in to the resulting plan. Smaller teams, perhaps five to eight people, are easier to work with and usually create the plan in less time, but they have to work harder to get buy-in.
That person who has strong feelings and critiques your business? Get them involved — make them integral to the plan. If they’re not part of the process, they are likely criticizing it (or the resulting plan), undermining your effort. Get them engaged in the process and owning the end product.
Ensure you use a cross-functional group — look across business lines, services or functions.
Those on the team must communicate constantly with those who are not. Make sure everyone in the business feels their voice has been heard. This is not a “black box” where everyone sees the output only when it’s fully baked.
How long does the process take? Most often, four to 12 months, or commonly around six months. That is a small price to pay for something that may transform your staff and business over the next five years.
The committee obviously can’t predict a major pandemic or black swan events in the economy or technology. While it is important for them to do the best they can, the team needs to be able to change or shift the plan if major opportunities or challenges arise. No plan sits in concrete.

You might consider having the imminent next-generation business leader head up the strategic planning committee, with a consultant facilitating the process.

What is the process?

There are variations for each family and business, and likely each consultant has their own twist on how to do this. Here is an overview of the process:

Where are we today? Start with a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis of the current business. For smaller organizations, we’ve done a series of interviews and created the SWOT for them. For larger organizations, we’ve separated them into teams or functions and facilitated the teams in creating separate SWOT analyses for each function.
Define the goals. There certainly are financial goals (and let’s make sure they are challenging, not just what we expect the business to do with its current momentum). But also consider the culture of the business, succession plans (for leadership and other key positions), next-generation development, community impact, governance, the family’s roles, etc.
Create success measures — not just for the goals, but also for the strategic plan itself. When the plan is finished, how will the family and leadership decide that it was successful?
Working with the strategic planning committee, review the SWOT analyses and identify key initiatives to address weaknesses, capture opportunities or mitigate threats. We’ve typically done this with monthly in-person meetings and homework assignments between meetings.
As you define the various initiatives that will comprise the plan, identify the key steps within each initiative — perhaps two to five such steps. This often helps ensure team members define the initiative the same way and helps determine sizing and timing. Create rough cost and time estimates for each one.
After you flesh out the initiatives, have the committee put them on a calendar. You will want to analyze the results, as there is a tendency to have all of the initiatives run concurrently starting next month. Think about who will execute on the initiatives and make sure those staff members won’t be overwhelmed.
Finally, create a process for keeping the plan in front of your team to ensure it stays on track. Consider holding quarterly meetings to talk through the initiatives and change course if necessary.

You might consider having the imminent next-generation business leader head up the strategic planning committee, with a consultant facilitating the process. This can serve as a great way to test and demonstrate that person’s visioning and leadership skills, while building excitement for the future of the business.

Stop making excuses — let’s engage your team to move toward your family’s future legacy.

Charlie Carr, CFP® is president of Big Canyon Advisors LLC, which advises family businesses and family offices .

This article was originally published in Family Business Magazine .

Separating Family Governance from Business Governance

Sat, 18 Apr 2026 18:16:29 GMT

Separating Family Governance from Business Governance

By Charlie Carr, CFP®

Independent board members may experience an awkward moment in board meetings when the discussion shifts to a conflict among family members or to the family’s personal donations to a charity. Are we still talking about the business? Am I supposed to weigh in on what the family does with their family foundation? Should I care that an out-of-state cousin wants greater distributions this year? What do I say when two owners won’t speak to each other?

There comes a time when a business-owning family needs to separate business governance from family governance. Family businesses often either ignore family governance (pretending it isn’t needed) or handle it within the business governance framework without realizing that is what they are doing.

There likely will come a time when both the business and the family require more dedicated attention to their unique needs. As with most family business matters, life is better when the family takes action before the challenges become lava in an active volcano.

Defining governance

Most of us have a good idea of what business governance is. It involves either a fiduciary (i.e., voting) or advisory board of directors, which provides strategic oversight of the business and its key operations and growth. As consultants, we have established boards that are directly tied to a legal entity or a holding company, as well as informal boards that oversee a family’s portfolio of companies and holdings without a formal consolidated entity. (Side note: C corporations and S corporations are required to have a board of directors. LLCs, partnerships and sole proprietorships may choose to have a board of directors but typically are not required to do so.)

Family governance as a concept may not be as clear. The purpose of family governance is to build or maintain unity among the various family branches and to promote and build the family’s core values, likely benefiting the family business. The family decides that collectively, leveraging their financial and human capital, they can go much farther than they can individually. This decision signals a belief that the family can be much more than it is. Often, a family will form a family council, which creates and oversees a family charter (vision, values, policies), propagates family history, supports family education, communicates among branches, organizes family meetings and coordinates usage of shared properties.

One key difference between business and family governance is that the business board typically has authority to enforce its decisions, whereas the family council relies upon influence and shared family vision to get the family to comply. Family members can walk away from the collective family any time they desire. We often say that families must have a vision that is exciting and enticing enough that members want to participate and stay together.

As with most family business matters,
life is better when the family takes action
before the challenges become lava in an active volcano.

Why have separate governing bodies?

We’ve worked with families where nearly all adult family members work in the business, and the board is composed of family plus a few longtime advisors. Combined governance often works well in such situations, at least for that generation.

However, family businesses usually benefit from having independent board members, perhaps starting with two members and increasing to a majority as the business crosses generations. Such board members desire a professional board, which means focusing on the business rather than the family. On the family side, as the family grows in branches/generations, they may have more family members owning shares but not working in the business. Those family members may prefer having professional board members representing their interests. Also, the family member leading the business may not have the time, skills and/or interest in leading the family governance. It’s often an advantage to provide an opportunity for a different family member to get involved.

A growing family will benefit from separately focusing on the family. A family council can help keep family conflicts out of the boardroom, shielding business staff and the community from family matters. The family council also can focus on developing family members to be more informed business leaders and owners, as well as encouraging each member to reach their potential.

One key difference between business and family governance
is that the business board typically has authority to enforce its decisions, whereas the family council relies upon influence
and shared family vision to get the family to comply.

Benefits of separating governance

Let’s summarize some of the ways the business benefits from separating governance:

Ability to obtain better independent board members
Meetings focused solely on the business, perhaps leading to better growth and performance
Business leaders can focus on the business rather than family conflicts
Sends a message to employees that the business is professional

The family also enjoys some distinct benefits:

Greater focus and attention on family communication and unity
Improved ability to educate and prepare the next generation
Creates roles or opportunities for more family members to be involved
Provides a forum for resolving conflict
Sends a message to the family that family is at least as important as the business

Process for establishing separate governing bodies

If you don’t already have a written board charter and family council charter, this is a good time to create these important documents. Each charter should describe the purpose of the governance structure, who serves on it, length of terms, meeting frequency, compensation, etc.

One of the areas that requires careful consideration is the list of topics that the board or council is responsible for handling, often referred to as the “matters reserved.” For the board, this might include strategic planning, budgeting, capital expenditures above a defined threshold, new hires in the C-suite and acquiring or selling a business line. For the council, this might include creating the family vision and values, preparing for the annual family meeting, facilitating communication across branches, preparing the next generation and coordinating with the business. It takes considerable discussion and care to ensure the responsibilities of the two governing bodies are distinct.

Formally creating these separate bodies is a process. It likely will take a year or more to define and implement them and perhaps another year for each governing body to get comfortable with their purpose and process. It’s important to persist through this time, for the good of the family and the business. The benefits to both the business and the family are worth the effort.

Once you successfully separate the governing bodies, independent board members will be spared the awkward moments when family matters arise in board meetings, the board can concentrate its attention on improving the business, and the family will have a clear venue for raising and addressing family challenges while it continues to develop the family’s legacy.

Charlie Carr, CFP® is president of Big Canyon Advisors LLC, which advises family businesses and family offices .

This article was originally published in Family Business Magazine .

Why we Need Family Meetings

Tue, 17 Mar 2026 14:50:12 GMT

Why We Need Family Meetings

By Charlie Carr, CFP®

A client recently told us, “The younger generation is just too busy. It’s hard to get everyone together for family meetings.” Another client said, “We used to meet annually. They were great meetings. But we skipped a year due to scheduling conflicts. It’s now been four years since our last meeting.” A third client told us, “We don’t really hold family meetings. We spend a week each year at our vacation home. That’s basically a family meeting.”

These recent conversations are a helpful reminder that, from time to time, it pays to revisit both the why and the how of family meetings . Why do we hold them? And how do we make them meaningful? Let’s explore.

Why hold family meetings

An annual family meeting is a conscious choice:

To be intentional rather than reactive
To be connected rather than merely adjacent
To be aligned instead of drifting

Core reasons families choose to plan such a gathering.

Legacy . Let’s define our future legacy and do all we can to put it in place. The money you leave your children is only half the story. Your children themselves – their character, their relationships, their actions – are the other half. When a family gathers to review its vision and values, it is shaping the culture and character of future generations. That intentionality compounds over decades.
Celebration . When preparing for the meeting, organizers should start by asking, “What are we celebrating?” Recognize accomplishments. Highlight milestones. Tell stories of growth, resilience and generosity. If you can’t build a meaningful list of things to celebrate each year, you aren’t looking hard enough. Celebration reinforces a powerful message: we are not just related; we are in this together.
Building Relationships across Generations and Branches . As a family grows into the third generation and beyond, intentional time together becomes critical. Cousins do not naturally develop deep bonds without shared experiences. Shared values and experiences will keep a family together when money, business decisions or differing perspectives create tension. Strong relationships are the real glue.
Communication . Most family conflict does not come from bad intentions, but from unmet (usually unspoken) expectations. Family meetings create space to discuss assumptions, values and expectations before the family is in crisis mode. They also create a structured opportunity for quieter members to speak up rather than deferring to the loudest or oldest voice. When done well, the meeting becomes preventive maintenance for family relationships.
Family governance . Larger families have formal governance mechanisms, while smaller families tend to rely on informal ones. Family meetings are a natural time to communicate what is happening, evaluate what is working, and clarify roles and responsibilities. Clarity reduces friction.
Create shared experiences . This might be bringing in an outside speaker, watching and discussing a TED talk, or having everyone read a book beforehand and discussing it at the meeting. Shared intellectual and emotional experiences shape family culture. They create inside jokes, shared language, and common reference points that endure.
Family history . Re-tell the stories. How did the business start? What risks were taken? What mistakes were made? What almost didn’t work? These conversations allow the older generation to pass on wisdom while they are still here and give the younger generation a chance to ask questions while answers are still available. Stories have the power to shape identity as well as share information.
Have fun . We all want to laugh and have fun. If the meeting isn’t enjoyable, no matter how productive it is, members will find excuses not to attend in the future.

Celebration reinforces a powerful message:
we are not just related; we are in this together.

How to conduct meaningful family meetings

A family meeting should become a tethering point for the family: something consistent that lets everyone know, we are doing this on purpose .

Frequency . Most families meet annually. Some meet semi-annually, while a few meet quarterly. More frequent meetings can make sense in certain seasons – for example, during business transitions or major life events – but sustaining fresh, engaging content becomes harder the more often you meet. If the meeting isn’t enjoyable, attendance will decline.

Length . How large is the family and what do you want to cover? Gathering for days or a week is great, but keep the formal meeting portion as short as possible. For most families, two to four hours is ideal. Larger families with an operating business may require longer sessions, but attention spans are real. Protect them.

Financial discussions – including spouses . This is one of the most common areas of tension. Some families say, “We don’t want to share trust and investment details with the married-ins.” As a result, they either exclude spouses from the meeting or avoid financial discussions entirely. Be careful what message that sends. If spouses are excluded, don’t be surprised if your children end up spending major holidays with their in-laws rather than you. You are sending a clear signal that you don’t consider the married-ins fully part of the family. And consider this: how healthy are your children’s marriages if they don’t share financial details with their spouse after the meeting? In most cases, inclusion strengthens the family.

Financials – the right depth . The other financial topic is some families want the next generation to fully understand every detail of trusts, tax strategies, and investment allocations. This often translates into hours of technical explanation. Most family members are now bored, and less enthusiastic about attending next year. Our rule of thumb is to limit financial reviews to 20 minutes. Provide a clear, high-level update. If someone wants more detail, schedule a separate session. The family meeting should educate, not overwhelm.

Education . We hesitate to use this word, as the younger gen rebels against it and the older gen think it’s only for the younger group. These meetings are a great opportunity to build family vernacular as they all learn something together. Don’t call it education, just tell them it’s team-building or something similar.

Topics . Rotate themes from year to year. Keep the content fresh and interactive. If you bring in outside speakers, choose people who are energetic, engaging and fun.

A family meeting should become
a tethering point for the family: something consistent
that lets everyone know, we are doing this on purpose.

Summary

Every family is different. The structure and content of your meetings should reflect your family’s personality, size and complexity. Two principles apply to everyone:

Legacy is shaped intentionally . Don’t be complacent. Schedule the meeting. Hold the meeting.
Make it worth attending. You can’t force adults to show up, so make it enticing. Design a gathering that people are genuinely glad they attended.

While the meeting may only last a few hours, its impact can reverberate for generations.

A Rose by Another Name?

Would it change the interest level if we just called it something different? The purpose remains the same.

What if it were called: Family Legacy Day … Family Summit … Family Circle … Our Story Summit … The [last name] Forum … Family Fireside Gathering?

There are lots of alternatives (just ask your favorite AI chat), and if a different name helps the messaging, go for it.

Charlie Carr, CFP® is president of Big Canyon Advisors LLC, which advises family businesses and family offices .

How to Manage the Challenges of an Embedded Family Office

Fri, 06 Feb 2026 20:10:34 GMT

How to Manage the Challenges of an Embedded Family Office

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Many successful family businesses have a form of family office embedded in the company. It may start with the CFO helping family members with their taxes, or someone in accounting setting up the books for a family member’s outside business, or perhaps someone advising a family member through the purchase of a house or car.

Over time, this often becomes two or three employees supporting the owners’ outside needs, plus one-off support from staff in IT, legal and other departments. Many families don’t think of this as a family office. As one founder told me, “The business is my family office.”

The pitfalls

This is not necessarily a bad thing. A family office embedded in the business can be the most cost-effective way to manage risks to the family while supporting their wealth and endeavors outside the family firm. However, there are several challenges to an embedded office, which require careful management or may even result in the family deciding to separate the office from the business.

Distraction. Business staff should be focused on growing the business and serving its clients. Supporting family members’ personal acquisitions or handling their separate needs may distract company staff from their primary roles. It is difficult for even a senior staff person to explain to one of the owners that an upcoming tax deadline or new technology release won’t leave them time to support the family member’s personal request.

Privacy. When business staff also support the family, t hey may not be as diligent about protecting the family’s privacy as dedicated family office staff would be. They might not be discreet when the president of the company asks about her brother’s personal financial matters, and they might be tempted to tell co-workers about the new sports car a family member is buying.

Fairness . Is it fair when family members who work in the business are able to make greater use of business staff for personal needs than family members who do not work in the business? In some situations, large shareholders don’t have the opportunity to take advantage of business staff, while minority shareholders who work in the business leverage staff extensively.

Risk . A family office should reduce or mitigate risk to the family, perhaps by providing advice and support as family members make large acquisitions, ensuring they have adequate property and casualty insurance or providing technology and cybersecurity support. If family members outside the business are not comfortable using the business staff, then the family isn’t mitigating this risk as intended.

Handling family members' separate needs
may distract company staff from
their primary roles.

Part-time focus. When the family office consists of business staff who support the family on the side, those staffers might not perceive the family office as their full-time job. It is unlikely that anyone is providing stra- tegic planning, being proactive about risk management or even looking at how to most effectively support the family’s needs. For example, someone in accounting may provide paychecks for household staff, but is any- one in the organization performing background checks on those staffers?

Control . An embedded office can fall into a “no man’s land,” where everyone assumes somebody else is provid- ing proper oversight and control. In one case we know of, nobody was reviewing business credit card expenses for the embedded office -- accounting considered the task to be the responsibility of "the chairman's office," and the family had never thought about doing so.

Cost and value . When the family office is embedded and split between parts of the business, nobody knows how much the office really costs. When we identify the various pieces and assign costs to them, owners are often shocked at how much they are spending on a family office. Family members also may not truly appreci- ate or value the services they receive when they don’t know how much they really cost, how much time vari- ous staff put into those services or the level of expertise they are accessing.

An embedded office can fall into a 'no man's land,'
where everyone assumes somebody else is
providing proper oversight and control.

Mitigating the challenges

Embedded family offices can take many forms, and most of the above challenges stem from staff splitting their time between the business and the family. Some offices are embedded within the business legal entity but are actually a separate department or group that is fully dedicated to the family. Such an office can operate as though it were completely separate.

A hybrid version we see involves a small number of staff fully dedicated to the family (perhaps in the CFO’s office), who oversee family requests. These staff in turn may leverage business employees and relevant expertise. This version minimizes the size of the office, provides dedicated staff and still leverages the skills and capabilities of the larger family business. This dedicated team also allows the family to create specific controls, measure costs and focus on key risks involving the family.

In one family office we designed, business staff were clear that they enjoyed providing support for family members — it was different from their day-to-day job, and they didn’t want to lose that. Some hybrid solutions, such as the one described above, can accommodate that desire.

Why some businesses choose to separate the family office

Some people perceive embedded family offices as temporary, filling a need until the family or business is large enough to support a separate entity. That may be true, but not necessarily. Many families maintain an embedded family office for generations, and don’t see any reason to change.

However, there are several reasons that a family may choose to separate the family office from the business . Here are a few such reasons:

The family is planning to take the business public . Such families will want to carve out any personal support as quickly as possible, so advisers and analysts are not confused by the functions. It is extremely rare for a public company to house a family office (although we are aware of a few), and it is not something we recommend.

The family is planning to sell the business . While we often see provisions within such transactions providing the family six months or even more to carve out the family office, there may be value to separating the family office before the transaction is in progress. One such reason is to ensure that staff whom the family wants as part of the family office will not be included in non-solicit arrangements with the new owners. We have seen scenarios where a family wanted the business CFO to run their new family office, but since they didn’t plan it before the sale, they were not able to hire the person.

The family is looking to receive outside funding for the business, perhaps for future growth or liquidity . Depending on the source and amount of such funding, they may be able to maintain an embedded family office, but it is likely that, even if the family maintains control, the new owners will prefer to have personal services separated.

The family decides that its privacy needs are not being met or business staff are being distracted . While there are ways to mitigate these challenges, as described above, the simplest way remains separating the family office from the business. Many families have concluded that these challenges are insurmountable, leading them to a separation.

While there is no definitive research itemizing the number of family offices, embedded or otherwise, we believe there are more embedded offices than separate ones. Carefully considering and balancing the goals and needs of the family and the business enables you to decide if an embedded office can continue to support the needs of both.

Originally published in Family Business Magazine , May 2020

How to Determine Whether Your Family Office is Successful

Sun, 11 Jan 2026 03:48:34 GMT

How to Determine Whether Your Family Office is Successful

By Charlie Carr, CFP®

Last year, someone asked me a simple question that led to quite a bit of thought and discussion: How do I know if my family office is successful ? The most common initial answers (investment returns, tax benefits) feel flippant and incom plete. One former family office president said, “I considered each year a success if I didn’t screw anything up … (long pause) badly.”

What became clear is that very few family members or office leaders had thought about this question. If they measure success at all, their assessment is based on total expenses or investment returns, because these are the easiest factors to quantify.

If you don’t know how to define success, then how can you properly do strategic planning or decide where to focus new resources?

Derailers of success

We believe that most initial responses to this question are derailers of success rather than measures of success. In other words, good performance in these areas does not define success for the office, but poor performance can take the office off the track toward success. Here are a few examples:

Investment returns : Great investment returns generally do not make a family office successful, but messing up investments can make the office a failure. If a large investment flames out, or even if returns significantly trail their benchmarks, the family may place the blame on the office and its leadership.
Taxes : The family office might minimize tax liabilities and provide excellent tax planning, but this may be viewed as just doing its job. Losing an IRS audit or realizing that the family could have saved millions of dollars with better tax planning before selling a business or investment may define failure for the office.
Fraud : Discovering that an employee stole from the family or perhaps uncovering how an outsider successfully committed fraud may make the office appear to be a failure. If there wasn’t any fraud last year, or at least none that you are aware of, the perspective may be that the office did what it was supposed to do. But does that mean it was successful?

If you don't know how to define success,
then how can you properly do strategic planning
or decide where to focus new resources?

Service : Most family office staff will go to extreme lengths to provide any service or support that the family desires. Often, such efforts become expected and don’t constitute success, whereas not doing so may be an irritant or failure in the family’s view.
Total cost : One family member told us he viewed the family office as a bottom-line number: “Do we really need this many people?” We doubt many people consider staying within budget to be their definition of success.

Each of these things may be compared to the starter on your car. When you turn the ignition (or press the button on many cars), you don’t think about whether or not the car will start, unless you recently had problems with it. Being able to start the car doesn’t guarantee that the journey will be successful, but if the car does not start, the journey will likely be a failure.

What is success?

The definition of family office success will vary, depending on the family and the office. What is the purpose for the family office? Most often, even when the family hasn’t defined it explicitly, the purpose is to promote the family’s legacy. How well does the family office support the family’s vision and hopes for the future, in addition to supporting their financial ability to pursue these dreams? This likely has more to do with maintaining family unity and cohesion, maximizing the family’s human capital (rather than financial capital) or seeing an entrepreneurial spirit and passion persist in future generations.

In the earlier analogy of starting your car, the car is a means to support your journey, whether that is to the grocery store or on a vacation. A family office is part of the means for a family to achieve its vision or legacy — the vision or legacy is more important than the office.

Once you identify how you will define success, you need a

reporting dashboard to track it.

One family told us their family office’s purpose was to “remove the burdens of wealth from the talent [next-generation family members], so they can focus their time and attention on the business.” For this family, success can be measured by how much work has been removed from the family members. Another family told us that the founder has very strong values, and they will measure success by whether or not the values remain after the founder passes away. This is harder to measure but an admirable objective.

It is not an easy exercise, and it requires being intentional in thinking through your purpose and identifying how you will define success.

Measuring success

Once you identify how you will define success, you need a reporting dashboard to track it. This should be a one-page report, measuring not just the primary measures of success, but also the derailers. A good report will track what will make the office a success, as well as factors that could prod the family to say it is a failure. The measures should be both short-term (e.g., How we are doing this year?) as well as long- term (e.g., How we are doing over five years?).

The easy metrics are typically the derailers: total expense, investment returns, tax liability and fraud. How do you report on fraud? If you were a victim of fraud, you obviously report that. If you are not aware of being a fraud victim, perhaps you report results from accounting controls or from your regular ethical phishing tests (because you are doing those, right?).

How do you measure family members’ entrepreneurial spirit and passion? One family decided that a partial answer was to track the percentage of family members whose earned income is at least as much as the distributions they receive. This is not a clean proxy, but it’s moving in the right direction. Another family tracks level of academic degrees earned and ongoing educational efforts.

One might wonder how the family office can impact or influence these results. Once you understand the vision and desired legacy for the family, the office leadership can get creative in helping them move toward that vision. If education is a big part of that, then the family office can help each family member find ways to further their education or participate in relevant conferences or seminars. If entrepreneurship is important, the office might find relevant speakers for the family retreat as well as provide one-on-one coaching.

Supporting a multigenerational family legacy is never easy, but don’t let the challenge deter you from putting in the effort. Start with intentionality, then add creativity from your leadership team and a lot of hard work — and prepare to celebrate the success of your family office.

Originally published in Family Business Magazine , January / February 2020

Should I Form a Family Office?

Wed, 31 Dec 2025 21:46:39 GMT

When to Start a Family Office

By Charlie Carr, CFP®

Your family business has grown and prospered beyond your dreams, your wealth is growing, and friends are telling you it is time to start a family office . You are confused, recognizing that you aren’t the Rockefeller or Gates family, and wonder if a family office is really right for your needs.

How do you know whether you should start such an office?

Let’s detour briefly to define what a family office is. In simple terms, a family office is a private organization created to oversee and manage the financial needs of a specific family. They may be as small as one or two staff, supported by a network of outsourced advisors, or they may include 20 or more employees. The ideal family office is a mix of insourced and outsourced services, leveraging a network of expert advisors.

There are a series of factors that weigh into the decision. We constantly meet families who are wrestling with this question, and there rarely are easy or clear-cut answers. However, if factors suggesting a family office outweigh the ones suggesting not, then the family may decide to move forward.

Let’s discuss seven key factors to consider when making this decision:

High wealth complexity. Is the burden of administering your wealth and holdings outweighing the benefits of that wealth? Families with multiple houses with maintenance, staffing, and potential renovations often find they want additional support. Other families have assets spread across various trusts and entities, with a long list of asset managers and custodians. Often, such families struggle with knowing their total worth, identifying all of their holdings, and tracking their spending. 
Multi-generations. There certainly are first generation wealth-owners without children who can justify a family office, but most often, family offices benefit families who are planning across three or more generations.
Privacy. A family office can be a tool for protecting the family’s privacy about its wealth and activities.
Legacy. What is the family’s desired legacy across the next 50 to 100 years? Is there a desire to build and maintain family unity across generations, held together by common values, history and perhaps a business or other holdings? Other families want to split the wealth at each generation, giving each person freedom and flexibility to go their own way.
Control. Families often form a family office to give themselves greater control over investments, holdings and staff compared to using outsourced investment firms.
Cost. Hiring staff, with facilities and equipment, can be expensive. Frequently, one can outsource services or use a multi-family office for a lower cost. When the importance of the other factors listed here out-weigh concerns about cost, then a family office is feasible.
Wealth level. The typical question is, “at what level of wealth should I start a family office?” Are we discussing overall wealth, including the business, or just marketable wealth? The right answer, of starting a family office or not, depends on the above factors just as much as wealth. However, since we are pressed for an answer, here is a rough guideline:

Advice and assistance from external parties can be beneficial for families who are unsure of whether to establish a family office. Such observers may be able to pinpoint the family’s challenges, guiding them to the best decision for their family.

 Related reading:

Why Should I Allow an Outsider to Review my Family Office?

Sun, 20 Jun 2021 02:23:38 GMT

Why Should I Allow an Outsider to Review my Family Office?

By Charlie Carr, CFP®

Why should I allow an outsider to review my family office?

This is a key question we frequently encounter. One of the primary purposes of your family office is to maintain the

privacy of the family. If you allow someone to spend time in your office, understanding the services, processes and procedures, then you are giving up elements of that privacy. Why would you do that?

What could the family office gain?

A better question might be, “what do you have to gain?” Could there be risks or gaps that you haven’t thought about? Are there holes in your control processes? Could you better serve the family by bringing some services in-house, or perhaps by outsourcing something you currently do in-house? What additional services might you consider providing for the family? Are there ways to deliver your services more efficiently or effectively, perhaps allowing your team to expand their offering?

Do your reports to the family provide them the information they want and need? Are you effectively using technology? And, not to step too hard on your toes, but when you changed your bill pay and approval processes during the pandemic, did you look at your controls to ensure they are still relevant and effective? If fraud were to occur, where is it most likely to happen?

What is a family office diagnostic?

We have worked with a wide variety of family offices over nearly 20 years, and are often challenged to come up with creative ways to add controls (e.g., how do you segregate accounting duties in a one-person office?) or enhance an offering. A family office diagnostic shows how your office compares to other family offices, gives you a quantitative grade, and most importantly, provides a series of recommendations for how to improve the office – risk management, effectiveness and efficiency.

Such a diagnostic can be a great prelude to creating strategic plans , as you prepare to service the family’s next generation or consider technology upgrades. As for the privacy issue that we opened with, we zealously guard the family’s privacy; our continued business depends on our discretion. Please reach out and let’s discuss a family office diagnostic.

Family Business Dividend Policy Creation

Fri, 09 Apr 2021 14:51:40 GMT

Over the years, I've really enjoyed working with the various people at Family Business Magazine, and am honored to have another article published in the current edition.

I've had many questions over the last few years about how family businesses should make distributions to owners, and I finally wrote my thoughts on the topic.

Being thoughtful on this topic, involving the various family owners in documenting philosophy and approach, can go a long way toward building family harmony. I hope you enjoy this article.

Please reach out about creating a vision and strategic plan to support your legacy.

Family Business Charitable Contributions

Tue, 23 Feb 2021 15:50:46 GMT

One of our family business clients recently asked for a benchmark or assistance in setting an amount for charitable giving from the business. What a great question!

The challenge is that family businesses have such different goals, values and approaches; it is difficult to compare them to each other.

Most family businesses are at least doing nominal charitable giving, such as sponsoring youth sports and local schools or perhaps in-kind donations of whatever product or service they provide. Many family businesses do this without tracking them or even much thought.

When it comes to larger donations, businesses have to think about why they are making them. Some businesses make donations as public relations, perhaps instead of advertising and marketing. These businesses may have larger donation budgets than others, as it combines marketing with charitable desires.

Some businesses make very few donations, explaining that they distribute money to owners and encourage them to donate personally. A few family businesses we know have used the Biblical-tithe as a rule, giving a tenth of their net income, either donating in-year or perhaps setting up a foundation or donor-advised fund. Some businesses set a fixed amount annually, based perhaps on what they did in the past or a number that “feels” right. Other businesses choose to make donations in particularly good years, or perhaps when they sell a line of business or a particular property.

One conversation we’ve held many times is about how important it is to ensure that donations from the business match the family’s shared values while ensuring they support (or at least do not detract from) the business’ goals. In other words, if a donation could lead to bad social media or alienate groups of customers, or if perhaps the recipient organization only matches the values of a subset of owners, then the business should not make the donation. Focus on where the family and its values are in alignment, and ignore the areas where they disagree.

None of this musing answers our client’s question about how much they should budget for charity each year. We would love to hear from you on benchmarking charitable giving – how has your family business set amounts for such donations?

Please reach out about creating a vision and strategic plan to support your legacy.

Vision Provides Boundaries for What Not to Do

Fri, 18 Dec 2020 15:49:26 GMT

In working with families, family businesses and family offices on their vision and strategic plans , we’ve long discussed how the vision and values should identify where to focus your efforts and attention.

Many times, we’ve looked at business opportunities and evaluated whether they aligned with the family’s values, as well as their vision. We’ve targeted investments, new businesses, philanthropic initiatives, succession plans, training programs, and much more based on their desired future-legacy. This has been a clear benefit of knowing who you are, where you want to go, and what is important to you. You can choose to change your vision, but don’t operate outside of it.

As I created the vision and values for Big Canyon Advisors, I was reminded of another benefit to having a clear vision and purpose: providing boundaries about what not to do. I am focused on inspiring families to achieve their legacy for the next 100 years; spending time on activities that don’t support that vision is a distraction, limiting my success.

Recently, several people have approached us about referral opportunities with good, solid companies. However, while such arrangements could be profitable for the business, since they are not within the vision (and are potential conflicts of interest), we have declined these opportunities. Our vision statement has helped us understand not just where we are going, but also where we should not go in order to stay on track.

Having a clear vision and strategy for the family and business keeps us moving toward our goals, while also providing boundaries to help us say “no” to things that could distract or waylay us on the path toward success. This is just as true of the families, businesses and family offices with which we are working.

Please reach out about creating a vision and strategic plan to support your legacy.

Welcome

Thu, 29 Oct 2020 14:48:21 GMT

Welcome to Big Canyon Advisors!

After more than 30 years of working for large companies, and nearly 20 years focused on family businesses and family offices, I took the leap to start my own consulting firm. I have been inspired by the entrepreneurial spirit of many of the clients I’ve advised over the years.

We will use this blog site to share insights into some of the common challenges we find across our clients, and hope to hear back from you, with your own insights and experiences.

Our intent is to have a fresh post at least monthly, so please check back.

Thank you for visiting.

Charlie

Family Office & Family Business Insights | Big Canyon Advisors

Current Income vs. Long-Term Growth in Family Businesses

Current Income vs. Long-Term Growth in Family Businesses

Income focus vs. growth focus

Why This Difference Matters

C haracteristics of Growth-Oriented Family Businesses

How to Shift Towards Long-Term Growth

The Hard Challenges that Large Family Offices Face

The Hard Challenges that Large Family Offices Face

While your family may not have a family office, or perhaps has a small one embedded in the

family business, many of the challenges of large family offices are either common to smaller offices or perhaps are lurking in your future.

Shared Vision / Values

Focus on the Family's Human Capital

Helping Family Members Find Purpose

Improving Family Engagement

Family Office Services: Finding the Right Balance

"We described these challenges at a recent gathering of family office leaders, and the most common reaction was great relief that they weren’t alone in facing them."

Building Family Office Infrastructure

A Family Business Dividend Policy Helps Ensure Predictability and Family Harmony

A Family Business Dividend Policy Helps to Ensure Predictability and Family Harmony

A thoughtfully developed dividend policy does more than determine how profits are distributed. It establishes clear expectations, reduces uncertainty, and provides a framework for balancing the needs of today's shareholders with the long-term health of the enterprise.

Dividend Philosophy

Dividend Timing

"The more the family understands the business requirements and philosophy, the more likely you are to have unity and agreement."

Dividend Methods

Celebrating in a Family Business

Celebrating in a Family Business

"Whether a business has 10 employees or thousands, the challenge

of cultivating a culture of celebration is universal."

Why Celebration Matters in a Family Business

Building a Culture of Celebration

Family Celebrations

Significant Milestones

Fun and Unique Celebrations

"Working in an environment that values celebration is more enjoyable. Existing staff members are more likely to stay, and attracting new talent becomes easier."

Staff Recognition

Achievement of Goals

Birthdays and Anniversaries

Celebrate Throughout the Business Cycle

Celebration Strengthens Family Business Culture

Innovation is NOT a 4-Letter Word

Innovation is NOT a 4-letter word

"We know we need to come up with new ideas to grow, and we know that will involve some ideas that fail, which makes it scary. We need to remember that change is good and not a betrayal of the family’s founders. In fact, such changes often honor those founders."

What Innovation Really Means?

"Innovation is doing things in a different way from what you have in the past to improve the experience or profitability."

Creating a Culture of Innovation

Embracing Innovation Without Abandoning Family Values

Does Your Business Have Traditions, Customs or Policies?

Does your business have traditions, customs or policies?

Why do Customs or Traditions Fall Short in Business?

While traditions are important for celebrations and culture, when they replace formal, clear business policies, problems arise.

The Cost of Not Having Policies

The Benefits of Having Clear Policies

What Types of Policies Should You Have?

The Importance of Policies for Long-Term Success

When is a Family Member Ready to Join the Business?

When is a Family Member Ready to Join the Business?

Balancing development, credibility, and contribution across generations.

Thoughts on Employment and Succession

Signs a Family Member is Ready to Join the Business

Big Canyon Advisors: Our Approach

They can’t just be looking for a job but must be specifically excited about this business.

A Real-World Example

Looking Ahead

Strategic Plan vs. Business Plan

Strategic Plan vs. Business Plan

Why the resistance?

Creating a strategic plan prompts leadership (family members and business leaders) to be proactive rather than reactive.

Benefits of strategic planning

The process of creating a plan is as important as the resulting plan.

Strategic planning guidelines

You might consider having the imminent next-generation business leader head up the strategic planning committee, with a consultant facilitating the process.

What is the process?

Separating Family Governance from Business Governance

Separating Family Governance from Business Governance

Defining governance

As with most family business matters, life is better when the family takes action before the challenges become lava in an active volcano.

Why have separate governing bodies?

One key difference between business and family governance is that the business board typically has authority to enforce its decisions, whereas the family council relies upon influence and shared family vision to get the family to comply.

Benefits of separating governance

The Hard Challenges that Large
Family Offices Face

family business, many of the challenges of large family offices
are either common to smaller offices or perhaps are lurking in your future.

"We described these challenges at a recent gathering
of family office leaders, and the most common reaction
was great relief that they weren’t alone in facing them."

They can’t just be looking for a job
but must be specifically excited about this business.

As with most family business matters,
life is better when the family takes action
before the challenges become lava in an active volcano.

One key difference between business and family governance
is that the business board typically has authority to enforce its decisions, whereas the family council relies upon influence
and shared family vision to get the family to comply.

Celebration reinforces a powerful message:
we are not just related; we are in this together.

A family meeting should become
a tethering point for the family: something consistent
that lets everyone know, we are doing this on purpose.

Handling family members' separate needs
may distract company staff from
their primary roles.

An embedded office can fall into a 'no man's land,'
where everyone assumes somebody else is
providing proper oversight and control.

If you don't know how to define success,
then how can you properly do strategic planning
or decide where to focus new resources?