Conducting a business in a family can be a very difficult and challenging experience.
Despite this many small businesses in Australia especially in the farming, fishing, hospitality and the retail sectors establish, own and operate their business in a family group.
The rewards of conducting a business in a family can be enormous. There are considerable cost savings in relation to labour costs and economies of scale that far outstrip single family operations, or operations that employ outside people.
Families can achieve great things and generate considerable wealth
This is provided the family is harmonious and that there is a clear plan of operations and business succession.
Families by their very nature bring together a range of people with different personalities. Once the family starts to grow and outsiders are introduced through marriage, relationships and children, interpersonal relations begin to change.
This is a normal phenomenon and one that all family businesses eventually have to address as the family grows in the future.
We can assist in this process by mediating family meetings and providing advice on what issues may arise, along with various strategies and ideas that can be used to mitigate or resolve inter family or generational issues.
Family businesses need to be proactive in this area so that all family members are provided with basic rules and processes at the start.
This will then provide all family members an opportunity to be heard and considered, in the running and conduct of the family business.
These rules, processes and family plan can be documented for future reference.