Family businesses come in all different shapes and sizes and account for 70% of all businesses in Australia.
Like all businesses, a family business can have advantages, such as flexibility, and disadvantages, such as family conflicts.
Top 10 tips for family businesses
To help your family business run smoothly, the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) has put together these top 10 tips for family enterprises :
- Leave work at work and home at home.
- Have clear roles for each family member.
- Pay the award rate to all family members who work there.
- Use outside advisors for unbiased advice.
- Have a good management structure - don't confuse ownership or inheritance with management.
- Be open with communication - both good and bad news must be shared.
- Clearly outline the entry and exit conditions for family members involved with the business from the beginning.
- Develop a succession plan and make sure that all parties agree on the transfer of ownership.
- Hold regular meetings and family 'retreats'.
- Use mentors and family business forum groups as a sounding board.
What to do...
- Visit the Best practice principles for family enterprises page on the ASBFEO website for further tips.
- Check out the Family business page on the Government of South Australia website for more information on advantages, disadvantages and succession planning.
- Read our Succession planning page to find out how to plan for a change of ownership in your business.
- Read our Transferring ownership page for information on transferring business ownership.