You Can't Teach a 6-Year-Old About Taxes
Our guest expert today is Jeff Savlov. Jeff is the Founder of Blum & Savlov, LLP and consults to business families, legacy wealth families and the advisors who serve them. Bio.
Knowledge is wealth.
This is a make-or-break point when running a family business.
It’s true that you shouldn’t, and won’t ever, know everything all at once. Knowledge comes incrementally.
You have to decide when that information is dispersed and to whom—you aren’t going to teach your 6-year-old about tax returns just yet. But you can always start with a story or a lesson, strengthening the bond of your familial ties.
These 3 articles by Jeff Savlov can help you get started regarding the family part of your family business. He discusses those difficult discussions and how to approach them, instill the values of your family business for generations to come, and ensure these values live on long after you’re gone.
There’s more to a family business than just starting it and maintaining it. You have to live it and make the rest of your family want to, too.
The Family Wealth Discussion
You can talk to your children about wealth without mentioning money and discuss money without bringing up numbers.
Wealth can look different to each person. You should strive to see wealth as more than just money but also as things that are valuable to you—like your health, relationships, and happiness.
Sharing stories that include these values with your family can help to foster a better sense of character.
Generational Transitions within Your Business
As Jeff Savlov saw in St. Lucia with 2 different tour guides, family businesses are all about spreading information and wealth throughout generations.
You have a vision for your business like one of Jeff’s tour guides did, and that needs to translate to your children so your company can thrive long after you’re gone. The quickest way to do that is by inspiring them: show them why your process is essential, how it works, and how it will ultimately benefit them.
Ethical Wills to Perpetuate Your Love and Wisdom
Rather than giving money, you leave behind documented wisdom for those after you.
It’s not so much something that’s ethical, although it’s admirable, but rather something that disperses ethics.
Doing this is especially important when it comes to a family business. You’ve learned a lot in your lifetime—enough to become a company owner. Passing this information to your children and theirs will make your family wealthier.
Make Your Business Stand Out By Working From The Inside Out
When it comes to maintaining your family business, you can’t forget how crucial values, education, and knowledge are to ensuring the longevity of your company.
You can’t skip sharing your values with your children if you want a smooth generational business transition.
Don’t avoid the complex discussions, either! Everything must come together for your family business to live on for generations.
Jeff Savlov has a wealth of knowledge and many more articles on managing all aspects of your family business. Check them out here.
