Start Your 5-minute

Family Business Checkup

How is your family business doing?

That question can be hard to answer sometimes. The business might be doing well, but the family may be struggling. How do we account for that?

At Prairie Family Business Association, we know what it takes to make a successful family business tick. We’ve put together the following checkup to help you determine how your family business is doing.

Family Business Checkup

Answer the following questions on a scale of 1-5 with 1 being the lowest/strongly disagree and 5 being the highest/strongly agree.

	1 - Strongly disagree	2 - Disagree	3 - Neutral	4 - Agree	5 - Strongly agree
We hold regular family meetings with a formal agenda and input from all members.
We have clear family values and a mission/vision statement that guides our decisions.
We resolve conflicts without harming family or business relationships.
The younger generation learns from and feels empowered by the older generation.
We separate business discussions from family gatherings.
Our family culture is intentional, with a designated Chief Emotional Officer.
Family dynamics don't influence management decisions.
There is family agreement on the use of profits.
Past conflicts are resolved without lingering resentment.
We communicate openly about sensitive issues.

	1 - Strongly disagree	2 - Disagree	3 - Neutral	4 - Agree	5 - Strongly agree
The current business leader has plans for retirement and transition—including a set date.
Our business has a board of directors that includes members from outside the family.
We have an updated business plan and financial forecast.
Our company culture is strong, with employee satisfaction tracking.
We have an up-to-date organizational chart and strategic plan.
We communicate mission, vision, and values to all team members.
We invest in leadership development and understand employee motivations.
We have a family employment policy that is followed by all.
We have written job descriptions for all key positions and clear expectations for success.
We mitigate industry and family business risks—including transition plans for key employees.
Critical administrative tasks have well-documented processes.
We have an emergency plan that includes all critical information (bank accounts, passwords, etc.)
We maintain an updated employee handbook and HR management.
We have clear disciplinary policies and we follow them.
Performance appraisals for family and non-family employees tie into compensation and raises.
Managers inside and outside of the family share authority appropriate to their responsibilities.
We track hiring, firing, and turnover rates for company culture assessment.
Non-family managers feel comfortable raising issues to family leaders.
Family members have growth plans for future responsibilities.

	1 - Strongly disagree	2 - Disagree	3 - Neutral	4 - Agree	5 - Strongly agree
There is a written succession plan for the next generation.
We have had our business valued and we know how this value will be used in the transition process.
We have a buy/sell agreement that clearly outlines how ownership may be transferred and the funding method has been established.
All owners agree with the transition plan and understand how stock will be transferred at the time of transition (gifted, purchased, or both).
All business properties and assets are owned in a manner that was laid out intentionally with the future of the family and the business in mind, and we are comfortable with the arrangement.
We regularly consult with trusted advisors with expertise in family business ownership. We meet with these advisors before making major decisions.

Start Your 5-minute

Family Business Checkup

How is your family business doing?

Family Business Checkup

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