Family businesses account for 70% of all businesses in Australia. There are many advantages to running a family business but there are also disadvantages, such as family conflicts.
To help your family business run smoothly, the Australian Small Business Commissioner (ASBC) has put together these top 10 tips for running a family business:
1. Leave work at work and home at home.
2. Have clear roles for each family member.
3. Pay the award rate to all family members who work there.
4. Use outside advisors for unbiased advice.
5. Have a good management structure – don’t confuse ownership or inheritance with management.
6. Be open with communication – both good and bad news must be shared.
7. Clearly outline the entry and exit conditions for family members involved with the business from the beginning.
8. Develop a succession plan and make sure that all parties agree on the transfer of ownership.
9. Hold regular meetings and family ‘retreats’.
10. Use mentors and family business forum groups as a sounding board.
You may also want to check out the Family business page on the Government of South Australia website for more information on the advantages and disadvantages of running a family business.
For more information on Succession planning including how to plan for a change of ownership in your business visit the business.gov.au website.
This information was brought to you by business.gov.au