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A shared passion that creates rewards for all. Yes, the benefits of a successful Family Business are many, including contributing to their own prosperity and the Australian economy by generating employment opportunities.  

A Family Business also brings unique challenges and management complexities such as governance, ownership, leadership and skill abilities.  

Family politics, dynamics, and relationships, for example, can blur the lines of authority. Breakups, divorce and marriage can also disrupt harmony. Nepotism and favouritism can also come into play, along with generational differences, causing friction and faction. 

The new generation is eager to lead but can be held back by hierarchical decision-making, often influenced by traditions and norms. Not to forget the test of keeping family and Business matters separate to avoid dinner table arguments. 

This is why keeping it professional is so important for all concerned. 

Professionalism culminates in the right attitude, commitment, performance, ethical behaviour and discipline aligned with the Business vision.  Professionalising the Business is about adopting such practices to protect the stability, welfare and success of both members and the Business interests.  

How to do it! 

9 Ways to Professionalise your Family Business

1. Prepare a Mission Statement (Family Constitution) that articulates the Business vision, Family Goals, Values and Principles. Develop with input and involvement by all to get buy-in. 
2. Develop a Business Strategy that identifies objectives and performance measures. This helps monitor Business performance to KPIs. An essential tool to keep everyone and everything on track and to target. Identify short, medium and long-term goals to foster growth and Business evolution. 
3. Establish Strong Governance. Implement a structured framework such as Family Constitution, Family Council or Board. This formalises and standardises key policies, processes and practices, supporting transparency and accountability. 
4. Define Roles, Responsibilities and Boundaries of the family, Business and ownership.  This is crucial for independent functioning to separate personal, family interest and the Business entity. Clearly stated boundaries support smooth functioning, help eliminate ambiguity, and avoid disputes.  
5. Provide Training, Development & Growth opportunities. Establish defined roles and responsibilities and support members with career development opportunities. Reward and merit should be commensurate with performance, not family ties. 
6. Seek expert help. Engaging an experienced and well-qualified Board of Advisors can support a Business to transition and build a cohesive management team. Outside, independent oversight can provide objective and valuable advice. 
7. Succession Planning is formally planning for the future, longevity and success of the family and Business unit. It is about proactive planning for leadership handover to the next generation. Avoid informal conversations and promises that can be challenged or end in messy legal battles. And haven’t we seen those exposed in the public arena! 
8. Celebrate Successes. Take the time to celebrate wins, achievements and milestones of both members and the Business. A simple thank you, or acknowledgement is often reward enough for a job well done.   
9. Put your House in Order.  Having your Business affairs in order is essential. Accounts, Taxes, reporting, cashflow management, strategic planning, and more are key to a successful Business. This is where Blackburn Accounting can help. We are your family Business specialists offering a range of services and are here to provide the answers you need to run a successful Business that’s running at peak performance.