5 things every family business should do – part 1
Category : Practice Updates
by David Harland CPA
Running a family firm can be grinding. Sometimes it is too easy to get caught up working in the business instead of on the business.
A new fiscal year presents family business owners with an annual opportunity to take time to sit with key stakeholders and think about the issues surrounding their business.
Over the next five weeks we will discuss the issues you may like to consider in your business.
Part 1 – Create a Succession Plan
Too many family businesses treat succession like a goal instead of an ongoing process. If you haven’t started thinking about your succession plans or explicitly identified a successor, you could be setting your business and family up for failure.
Illnesses, unexpected emergencies and even death can all threaten future success unless you have plans in place. Succession is a critical responsibility and it’s important that you start thinking about who will step into key positions when you and your managers aren’t around.
If you already have members of the next generation working (or interested in working) within the business, now is the time to start nurturing those leadership and management qualities.
Most successful multi-generational businesses require family members to build experience outside the family business.
They typically do this for two reasons: One, they want to offer their children the freedom to pursue outside opportunities so that they fully appreciate their options. Two, their kids build valuable experience working for other businesses and bring fresh perspectives with them.
Source: CPA Australia