The strength and success of the family business sector is vital to the future of Australia’s economy, community and culture. Family businesses account for around 70% of all Australian businesses. They are the single largest employer in the Australian economy.
Whilst family-owned businesses come in all shapes and sizes, they all face similar, though not identical, challenges and questions.
The following tips apply to all Family Businesses.
Make time for your family because you won’t get a second chance at it!
Rebalance your priorities!
Families come first and whilst money is a great enabler, time with your family is even more vital. It may sound too easy, but financial support is available either from government, from family or from financial service providers. However your time for your family can only come from you!
The most successful balance is achieved by those businesses that are structured from the outset with the family in mind! Time and thought should be channelled into setting up your business procedures so that you don’t have to be there 24/7 to ensure things are running smoothly.
Seek help early!
Appoint a qualified family business advisor, preferably with formal accreditation, to assist you. An experienced and qualified advisor will combine knowledge of family business dynamics with highly refined business skills and can establish processes and procedures that enable family business members to effectively manage their time.
The best family business advisor for your business will exhibit a unique understanding of and genuine interest in the success of family businesses often acquired from personal experience running a family business. Ideally, this experience should be combined with current qualifications that enable the application of best practice management techniques through every step of the family business journey.
Don’t over commit yourself to work!
Know your limits!
Don’t take on too much work – however tempting the opportunity may be. You will do a better job for fewer clients than you would for too many clients.
Manage your growth via referral.
The fewer clients that you did manage well will be more inclined to refer you to others. Moreover, you can use your own networks to refer surplus client enquiries to others who you are confident will look after their needs. Referrals are often a reciprocal thing too and the company who benefitted from your referral this time may be willing to return the favour next time. Word of Mouth is gold!
Outsource non-core business activities.
If accounting or business administration is not your thing, talk to your accountant, who may be able to refer you to a third party service provider, such as a book keeper.
You must have a clear succession plan!
Succession Planning is a critical area for family business and it is imperative to get it right. Good succession plans provide clarity and direction for the future of the business whilst protecting family needs. It is essential that the plan includes the input of all family members. Developing a plan together, documenting it and sharing it will avoid tensions and disputes and offer the peace of mind you need to move forward confidently.
Ask yourself these questions and if the answer to any of them is ‘yes’ phone 1800 630 531 or contact us today
With offices in Parramatta and Penrith, advice on operating a Family Business has never been closer!
Are fractured family relationships jeopardising your family business? Do you want to retire, but you’re not sure your successor is ready? Do you need to make decisions, but find your parents won’t let go? Do you need support with your new role as ‘the boss’?