Recently we’ve received a few inquiries about drafting family business constitutions… we told them if that’s all they need, just google “free family constitution templates”, here’s why…
Drafting the document is the easy part, the real challenges are to get everyone aligned and to make tough decisions that’s best for the business/family longterm.
Imagine the same set of constitution applied to 3 different scenarios:
1. All stakeholders sit down, resolve issues and agree on a set of constitution that is best for the business & the family.
2. Majority stakeholders bulldoze through without consulting other minority/passive family members.
3. Stakeholders agree to the constitution because they each perceive it is advantageous for them to do so.
3 different scenarios, very different outcomes in the future.
If you own a non-family business with partners, just replace “family constitution” with “partnership agreement” or “business buyout agreement”, the scenarios are the same.
Have a profitable day!
ps: If you own a business in Malaysia, register NOW for our FREE Business Optimization Clinic, valued at RM750. We guarantee you will get at least 1-2 ideas you can implement immediately, even if you do not engage our services.
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