Fiscal Responsibility

“The highest legal relationship is as a fiduciary – someone entrusted to look after another’s financial best interest” – James Olan Hutcheson

Family businesses are often established on the “know-how” of the entrepreneurial founder. The financial acumen propelling the business is acquired over years of eating, sleeping, and breathing their business. Often they can “smell” how their business is doing simply by walking the shop floor. The methods of developing financial acumen in successive generations often isn’t the same. They will never have the same “founders experience” and are often thrust into high levels of responsibility. Leaders in successive generations must learn to make data-driven decisions through a host of other tools like financial reports, financial review meetings, and the counsel of advisors.

Financial growth in a family enterprise is required. All businesses must grow to keep up with inflation and taxes. A family business must grow to keep up with the growing demands of a growing family and its needs. Considering how best to restructure ownership, manage estate tax and maintain sufficient capital are all critical to long-term generational success.

Growth requires capital that may not be available through operations. Maybe a shareholder wants to sell, maybe a potential buyer has approached you; maybe you need money to fund a new initiative – whatever the reason, getting the capital structure right is one of the hallmarks of successful leadership.

REGENERATION works with owners to help sort through all the issues and consequences of fiscal responsibility in a family enterprise. We make clear and solid financial recommendations based on experience. We never enter a consulting assignment with the idea that your business should be sold. We work with owners and dig deep to understand all the objectives of the family related to their financial success. We are here to provide you with a truly independent perspective and voice.

Is your family business struggling with fiscal responsibilities?