In a healthy family business the business has a strong leader who gets to run the business without interference from the family.

The family needs a strong leader and so does ownership. Each of the leaders should know what they are accountable for.

In a healthy family business each of the three circles has their own priorities that they use only for their circle. They do not expect the other circles to make decisions based on their own. For example, a lot of families place a high priority on harmony. That is not always the same for the business circle (which is often to make a profit).

All healthy family businesses have clear rules of engagement for how you participate in the family, the business, and ownership. In a healthy family business you can't be fired from the family but you can be fired from the business.

Healthy family businesses have a different definition of fair for each circle. Most family’s define fair as equal. That is not and should not be what it is for the business circle. Ideally, all people in the business have a job they are qualified for, that is needed in the business and people are paid market rate for that work.

Healthy family businesses let the family make family decisions, the business make business decisions and the owners make owner decisions. Families and owners shouldn’t be deciding who works in the business and the business shouldn’t be deciding where every family vacation is for example.

Healthy family businesses have regular meetings for each of the three circles. Family members attend family meetings, owners (or future owners) attend ownership meetings and there are business meetings at each level of the business. Be careful about this - unfortunately, a lot of people call ownership meetings family meetings and end up causing trouble with that.