Being a Finance Director (FD) is never a straightforward job. You’re responsible for the financial health of the company, shaping strategy, managing risk, and ensuring the business grows sustainably. But in a family business, the role is different. It’s not just about the numbers—there’s a whole other dimension to consider, where family goals and emotions can carry as much weight as the balance sheet.
So, what makes the FD role in a family business so distinct, and how do the skills you need to succeed differ from those in a non-family organisation?
Balancing Business with Family
In most businesses, your focus is clear: deliver financial results, meet targets, and keep shareholders happy. In a family business, the financials are still important—but so are the values, ambitions, and even the emotions of the people behind the business.
Take dividends, for example. Should profits be reinvested to drive growth, or distributed to family members who rely on that income? What happens when a family member wants to fund a pet project that may not have a strong financial case?
These aren’t just business decisions; they’re personal.
As an FD, you’ll often find yourself in the middle of these conversations, helping to guide the family towards decisions that work for both the business and their own objectives.
More Than Numbers: Why Personal Skills Matter
Working in a family business pushes you beyond the traditional boundaries of finance. You’re not just reporting figures or presenting forecasts—you’re interpreting them in a way that makes sense to family members who may not be familiar with financial jargon.
In many ways, you become a coach. Some family members will need support understanding the financial realities of the decisions they’re involved in. Others might feel nervous about engaging with financial discussions at all. Your role is to bring them along, building their confidence so they can actively contribute to the business’s success.
At the same time, you need to stay diplomatic. Family businesses often come with long-standing dynamics—some of which might be unspoken but still affect decision-making. A skilled FD can navigate these waters, helping to diffuse tensions and keep the focus on what’s best for the business.
It’s not easy, but if you have emotional intelligence and a genuine interest in people, it can be one of the most fulfilling parts of the role.
Aligning Goals Without Losing Focus
One of the biggest challenges is finding the right balance between family priorities and business needs. Some of the key areas where this comes into play include:
Succession Planning: Helping the family understand the financial implications of passing the business to the next generation, or bringing in external leadership if that’s the better option.
Growth Strategies: Advising on investments that align with the family’s vision while ensuring they make financial sense.
Legacy and Stewardship: Supporting the family to preserve their legacy, even if it means making tough financial decisions in the short term.
These conversations aren’t always straightforward. But the ability to guide a family through them, providing clarity and perspective, is where a family business FD really adds value.
The Rewards of the Role
Yes, the job is demanding, and it often calls for more than technical expertise. But there’s something uniquely rewarding about being an FD in a family business.
You’re not just helping to grow a company—you’re helping to shape a legacy. Your work doesn’t just impact the numbers; it impacts real people and their futures.
And because family businesses often take a long-term view, there’s a sense of purpose in knowing the decisions you make today will still matter years—or even generations—from now.
Final Thoughts
Being a Finance Director in a family business isn’t for everyone. It requires more than just financial know-how. You need patience, empathy, and the ability to connect with people on a personal level, all while staying grounded in the business’s financial realities.
But for those who thrive in this environment, the rewards go far beyond the bottom line. It’s a chance to make a meaningful difference, not just to a business, but to the family behind it.
If you’re an FD in a family business, you already know: it’s not just a job—it’s a relationship.
About the Author: David Twiddle is Managing Partner of TWYD & CO. He advises business families on the appointment of non-family executives and on the complex and sensitive people challenges often encountered in family enterprises.