Our Top 3 Tips for a Successful Family Business
Family businesses can be complex so it is important to engage specialists who understand your needs and can provide the best long-term solutions for your business and family.
As the owner of a family business, you will want to do everything possible to protect its future, not only for yourself but for the next generation whose responsibility it may be to continue building on the successful foundations you have laid.
With our specialist team of trusted advisors, Carter Connell is pleased to offer your business a one-stop-shop for all the professional services your family business needs. We like to call this our ‘Family Office’.
Focusing on what matters most to your business and family, our team of experienced Chartered Accountants and Business Advisors, along with our trusted network of specialists, help to ensure the future success of your business.
Here are three key tips that will help your family in business for the long haul:
Communication
A smart business, whether run by a family team or not, requires clear and consistent communication between all internal and external stakeholders to achieve successful alignment on long-term goals.
Effective communication not only guarantees important information is distributed within your business and to relevant stakeholders but is also the best way to build and maintain trust and rapport.
Here are some warning signs that there might be poor communication in your business:
You often must repeat key information to relevant stakeholders
Employees ask questions they should already know the answers to
Suppliers consistently deliver a product/service that is not what you expected.
Different teams of employees don’t trust each other or collaborate well
Each of these issues, if left ignored, could become out of control and have negative implications on your bottom line.
Making the effort to communicate and keep everyone in your business on the same page will pay big dividends in the long-term.
Structuring
There are many ways to structure your business, each with different impacts on how your businesses is run and legal considerations. So, how can you choose the right structure for your business?
The optimal business structure will produce benefits across many areas, helping to maintain productivity, ensuring compliance with tax and legal requirements, and maximising your turnover and profits.
Having a sub-optimal structure can easily result in operating inefficiencies, paying too much tax, and leaving your business and personal assets vulnerable.
If you are unsure about the current structure of your family business, contact the team at Carter Connell on (07) 3337 6428.
Estate & Succession Planning
It is a sad reality that many family businesses do not survive into the second or third generation. Family-run businesses are complicated with many important factors to consider, including what will happen to the business assets when it comes time to transfer ownership.
Estate and succession planning is the key to safeguarding family and business assets for the long-term. This also requires you to have awareness of the value of your business assets and what they are likely to worth in the future.
Important considerations for estate and succession planning include having an up to date Will, proper management structure, asset transfer agreements and insurance.
If your family business would benefit from support in any of the areas we have identified, contact the Carter Connell team, and discover the power of our Family Office service.
Disclaimer: this information is of a general nature and should not be viewed as representing financial advice. Users of this information are encouraged to seek further advice if they are unclear as to the meaning of anything contained in this article. Carter Connell accepts no responsibility for any loss suffered as a result of any party using or relying on this article.
