✦ Family businesses are they a blessing or a curse?
This month, as we celebrate Heritage in Port Macquarie and the Hastings for those of us in business we can use this opportunity to reflect on both our successes and those things we could do differently to help set us up for a brighter future in both our families and our businesses.
When we look back are we going to see 20 years IN business or one (1) year in business 20 times.
McKinsey & Co, the large consulting firm reported:
“As well as the usual reasons businesses might fail, family conflicts over money, nepotism resulting in poor management, and infighting over succession can result in the failure of family businesses and the breakdown of family relationships.”
Are our business decisions being affected by our family dynamics? I expect we all know what buttons to press to aggravate our siblings, our parents and our children.
A Price Waterhouse Coopers' (PwC) survey on Family Business in 2021 showed 70% of business and wealth transfers failed when they occurred between family generations.
The 10 common problems affecting family businesses
1. Family problems
2. Informal culture and structure
3. Pressure to hire family members
4. Lack of training
5. High turnover of non-family employees
6. How to get capital and resources to grow the business
7. Lack of an external view
8. Misunderstanding the value of the business and how it is to be divided
9. Who will take over the business
10. No exit plan
Multi-generational family businesses are often rewarding both personally and financially. Your professional advisor can help you achieve your family and business goals.
As always this advice is general in nature and you should seek specific advice concerning your particular situation from your professional adviser.
Contact John Clarke, Success Tax Professionals
a/ 6/114 William Street, Port Macquarie, NSW 2444, Australia
t/ 0481 039 851
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