Running a business has its ups and downs, but when it’s a family affair finding the balance between the needs of the business and the family can be tricky to navigate.
Strong communication and even a little healthy conflict can hold the key to boosting the sustainability of a family business and the wellbeing of the family.
Family Business Australia (FBA) and KPMG Enterprise recently released the ninth Family Business Survey results, which share the views from two generations of family businesses. Both the current business leader and the next generation set to take the reins.
We’ve put together my key highlights and takeaways from the report.
- Finding a balance between the family’s emotional wellbeing and financial performance is important for success
- Poor communication is the source of most conflict in business
- Only 27% of businesses have a succession plan in place
- 64% of future leaders don’t believe they are ready to take the reins
- The majority (78%) of business leaders are male. But the upcoming leader has a more even 50-50 split.
Ensuring the longevity of your family business
- Keep the lines of communication open always
- While the current business leader has the knowledge and experience, embracing the entrepreneurial spirit of the next generation will set you apart
- Heated conflict gets you nowhere. Healthy debate is normal.
- Empower the next generation by giving them the confidence to make decisions in the business
- Start succession planning discussions now.
If you’d like to dive deeper into the results and learn more about the insightful stories shared you can access the full report.
Heather Moore is our accredited family business adviser and she will be more than happy to chat with family business owners about their experiences and plans for the future of their family business. Simply call her on (08) 9367 8133 to make an appointment.