Family Business Governance: The Three Rules Every Business Family Must Follow | 796

 "The family dynamic can either destroy your business or make it a joy to run. Governance is what tips the scale." - Dave Lorenzo

Running a business with family members can be fulfilling—or a complete disaster. In this episode, Dave Lorenzo outlines the three foundational pillars of governance every family business needs to survive and thrive.

Key Topics Discussed:
  1. Decision-Making Structure
    • Why you need a family business charter
    • How to assign decision-making authority based on dollar thresholds
    • Voting rights vs. voice in board discussions
    • Using the U.S. Constitution as a metaphor for governance
  2. Defined Roles and Accountability
    • Creating job descriptions for every role—including family members
    • Avoiding entitlement and protecting your top non-family talent
    • Minimum expectations and performance standards
  3. Succession and Continuity Planning
    • Building succession into every performance review
    • The difference between permanent succession and temporary continuity
    • Making sure someone is always ready to step in
Links and Resources:
Call to Action:
Running a family business doesn’t have to mean drama and dysfunction. Implement these three rules of governance and build a company that lasts for generations.
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