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Family run Businesses the backbone of Australia’s economy.  

What does it take to keep this essential lifeforce operating!  

A question many Businesses face, ponder and deliberate over! You might be one of them!

What are the do’s and don’ts to running a successful family Business and having a happy family!

Here are 8 Tips!

1. Open Communication and Respect 

2. Treat Your Business Like a Business

3. Effective Structuring

4. Cashflow – Keep on top of it!

5. Document Everything

6. Know where you want your Business to go 

7. To be or not be in the family Business!

8. Be prepared for the Best and Worst!

Open Communication and Respect: the foundation of healthy, productive working relationships with all family members is having genuine respect for each other supported by open communication. Actively listening, encouraging input, views, and any concerns create a bond and culture that can face any challenges.  

Treat Your Business Like a Business: You may be skilled in a profession, but you also need to invest in gaining business skills and or, include others who have them. It’s also critical that you and your Team members are skilled in their specific roles; having family involved doesn’t mean ‘carrying them’. Keep personal and Business matters separate.

Effective Structuring: Partnership company trust, sole trader or combined having the ‘right’ structure to suit your Business requirements is crucial. Examples, to protect assets, provide tax efficiency and allow smooth succession. 

Cashflow - Keep on top of it: You need to take care of your finances, including cash flow, the lifeline of any Business. Know the numbers and what's happening by engaging regularly with your Accountant. Be informed to stay in touch.

Document Everything: For the Business accountability and everyone's benefit document everything. Cover your Business operations and activities with formalized recording of policies, processes, and agreements. Don’t leave anything to memory, conversations or handshakes or hearsay. 

Know where you want your Business to go:  Starts by knowing what you want your Business to achieve, starting with the end in mind and being clear on where you're heading and what it takes to get there. This will help guide and give you more confidence when making decisions.

To be or not be in the family Business! Avoid family members joining the Business under ‘rite of passage’, regardless of suitability, skills and abilities. This can lead to later problems, issues and conflict.

Be prepared for the Best and Worst: it's been said many times before, ‘hope for the best and plan for the worst,’ and don’t put all your eggs (Business) in one basket’. This means spreading your wealth by adopting diversification strategies. These strategies are designed to balance risk and reward around superannuation, asset protection and other investments. Seek expert advice, speak with your Accountant.

Blackburn Accounting your family Business specialist helps small family run Businesses just like yours. Contact us today our Team is here to provide the answers you need to run a successful Business that’s running at peak performance.