Business is business. But family business is both business AND family. Adding the family aspect already makes things more complicated, but when you throw in ownership too, things can get tough to decipher.
Thankfully, there is a Three Circle Model that helps to explain things. This simple, yet powerful, tool has done more to help business families and their advisors understand all of the relationships than anything else in history.
Once you understand the Three-Circle Model, you can begin to see just how and why Family Businesses are different.
There are only Three Circles, but because of the overlaps, there are actually 7 different sectors. People from different sectors will naturally see things differently, from their own perspective.
Sectors 1, 3, and 5 are relatively simple to deal with. But in Sectors 7, 6, 2, and 4, the overlaps between Business, Family, and Ownership, make things trickier.
When you look at how the people from the 6 other sectors see things, and how all the people from the various sectors relate to each other, you can start to try to improve the communications between the sectors.
The key to moving forward together is to understand each other. The key to understanding each other lies in the communications.