Family businesses have a lot of scope to define what success looks like for them. Many owners are not clear about exactly what they want their company to achieve, which leads to conflicting priorities and poor decision making.
By having a clear purpose and robust set of values coupled to an executable strategy they will be able articulate what the company objectives are.
Ask what goals you are most interested in:
Growth (Maximise turnover and profit to increase the financial value of the business),
Liquidity (cash flow to use outside the company) or,
Control (retaining a controlling interest).
Achieving one or two of these will be extremely challenging so focus on just one or two, which should be the ones that are most aligned to your objectives.
Reviewing these on a periodical basis is crucial as both internal and external factors could change your objectives and the tactics you employ to achieve them.
Examples here could be disruptive technology changing a whole industry or geo-political shifts and policy making changes making one or more of your markets unprofitable or indeed obsolete.
Key changes to employees can also have a huge impact on profitability if not well managed and mitigated.
By utilising data driven decision making principles you will be able to mitigate some of the risks round the business operations and navigate through difficult economic conditions.