This is one of the most delicate blog articles I have every written. So let me be clear from the start. To the family business owner focused on costs rather than value, this is not a condemnation, but a gentle plea for introspection. The legacy you seek to preserve is not held just in the current bank balance; it resides in your capacity for bold investment, in your commitment to quality & improvements, and in your vision for the future.

In the grand narrative of the family business, there lies an inherent tension—a delicate and often painful struggle between the prudence of the past and the promise of the future. This tension is never more apparent than when a family, bound by shared legacy and sometimes crippling caution, shifts its primary focus from creating enduring value to merely managing relentless cost. It is a paradox rooted in love and fear. The generation that built the business often did so through sheer grit, sacrifice, and an almost sacred stewardship of every euro. This ingrained frugality, once a life-saving virtue, can subtly evolve into a paralysing mindset for their successors.

As a family business advisor specialising in the complexities of family businesses, I witness this tension first hand. I am brought in to navigate the choppy waters of lack of governance, proper financial reporting & analysis, the need for strategy formulation, the need for process mapping and restructuring—tasks that promise a significant return on investment: smoother transitions, higher profitability, a more efficient & resilient business to safeguard decades of legacy. Yet, despite the clear, quantifiable deliverables, I often feel the palpable sensation of being viewed not as a Value Catalyst, but simply as a Cost Centre. You can read the subtle messages in their eyes. They appreciate the need for all the value I am delivering, but they are still hesitant with regards the cost of my service. This is particularly true when engaging with expertise. If a formal strategic plan and governance structure I help you implement prevents even one major family conflict from crippling the business, my fee is negligible. If the Award in leading a family business course helps a next-generation member gain the skill and confidence to run the family business, the cost of the course is an investment in the family’s future wealth creation.

I know that balancing Cost vs Value is a delicate balance. But when I see family business owners (normally with an operator’s mindset, rather than a strategic mindset), that are focused too much on cost and with the immediate bottom line figure, cost reduction becomes the ultimate barometer of success. This can lead to some terrible mistakes that are based on a short-term mindset. To mention an example, some family business owners view salaries as an unnecessary bleed, not a strategic investment. Whilst it is very important that employees perform well for the wages paid, it is on the hand important that high-value, skilled and high-potential non-family employees do not leave the family business for other organisations that can recognise and better reward their talent. The family business could save some money today but loses the architects of tomorrow’s growth.

I understand that the focus on cost is immediate, tangible, and often gives a temporary boost to profits. But value—true, enduring value—is intangible, slow-growing, and requires faith. It is in the space between these two concepts that the soul of the business risks being diminished, whereby as an end result innovation is suffocated, the culture is weakened (whereby employees feel that they, too, are merely a cost line item to be reduced) and the future resilience of the family business becomes very fragile.

The greatest value of a family business is its ability to transcend generations. By neglecting value creation—investing in the brand, securing new markets, and developing next-generation leaders—the owners are unknowingly making the business less resilient and less attractive to the very children they hope will inherit it. They are passing on a delicate artifact rather than a robust, living enterprise.